Traders work at the trading floor of the New York Stock Exchange in New York, the United States, on Aug. 15, 2007. The Wall Street traded lower Wednesday morning with the Dow Jones industrials average dropping more than 160 points to lower than 13,000 benchmark after steep losses in the Asian and European markets on concerns of a credit crunch. (Xinhua Photo)
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    NEW YORK, Aug. 17 (Xinhua) -- The Wall Street surged Friday morning with the Dow Jones average rising more than 300 points as the Federal Reserve cut discount rate.

    The Fed said Friday it has approved a half-percentage point cut in its discount rate on loans to banks to "promote the restoration of orderly conditions in financial markets."

    The decision means the discount rate, the interest rate that the central bank charges to make direct loans to banks, will be lowered to 5.75 percent from 6.25 percent.

    This is the Fed's new effort to restore calm to financial markets which have been roiled after adding a total of 88 billion dollars to the banking system to increase liquidity.

    But the Fed did not change its target for the more important federal funds rate, leaving the benchmark interest rate at 5.25 percent.

    The Dow Jones industrial average surged 315.56, or 2.46 percent, to 13,161.34. The Standard & Poor's 500 index rose 37.00, or 2.62 percent, to 1,448.27, and the Nasdaq composite index rose 73.89, or 3.01 percent, to 2,524.96.

    The Wall Street plunged in recent weeks on concern of credit crisis with the Dow Jones industrial average declining more than 1,000 points since its year high of 14,000.

Crude prices rise on storm forecast, rate cut

    NEW YORK, Aug. 17 (Xinhua) -- Crude prices rose Friday on Hurricane Dean and the Federal Reserve's interest rate cut.

    The National Hurricane Center said Dean strengthened, which will head straight into the Gulf and a direct threat to oil and gas infrastructure.

U.S. Fed: downside risks to growth increased appreciably

    WASHINGTON, Aug. 17 (Xinhua) -- The U.S. Federal Reserve judged the downside risks to economic growth has increased "appreciably" while it announced Friday to cut its discount rate by a half-percentage point. 

Federal Reserve pumps $6 bln into financial market

    WASHINGTON, Aug. 17 (Xinhua) -- The Federal Reserve said on Friday it has pumped 6 billion U.S. dollars into the financial system to help beat back a widening credit crisis.  

Fed cuts discount rate by half percentage point

    WASHINGTON, Aug. 17 (Xinhua) -- The U.S. Federal Reserve said Friday it has approved a half-percentage point cut in its discount rate on loans to banks to "promote the restoration of orderly conditions in financial markets."