WASHINGTON, Dec. 17 (AFP) - The US Federal Reserve slashed its base lending rate to virtually zero Tuesday while pledging to take further actions to get credit flowing and revive an economy in the worst recession in decades.

The central bank’s Federal Open Market Committee lowered its target federal funds rate from 1.0 percent, already at a historic low, to a range of zero to 0.25 percent.

The unprecedented low rate announced by Fed Chairman Ben Bernanke and his colleagues is aimed at fighting off deflation and a credit crunch that is strangling the economy.

Additionally, the Fed said it would take other steps to stimulate lending and economic activity, including large purchases of mortgage securities to help unblock credit.

The Dow Jones Industrial Average surged 359.61 points, or 4.2 percent, to 8,924.14 Tuesday (Wednesday, Manila time).

But global markets were mixed Wednesday after the US Federal Reserve slashed its key interest rate to historic lows, with Asian stocks climbing modestly but European shares falling in early trade.

Asian stocks markets climbed Wednesday but enthusiasm was tempered by a mix of lingering worries about the US economy and a weakening dollar – which could add to the woes of Asia’s exporters.

Asian bourses closed higher after the US central bank announced a steeper-than-expected 0.75 percentage point cut to its target rate for overnight loans between banks to a range of zero to 0.25 percent.

In Tokyo, the Nikkei 225 stock average rose 44.50 points, or 0.5 percent, to 8,612.52 after initially rising 1.1 percent. Hong Kong’s Hang Seng Index rose 1.5 percent to 15,361.58. South Korea’s Kospi added 0.7 percent to 1,169.75, while benchmarks in mainland China, Singapore, Thailand and Australia also gained.

The central bank’s bold actions surprised Wall Street - most analysts expected a 0.5 percentage point cut rather than 0.75 - and raised hopes of lower interest rates and cheaper money around the world to get companies and consumers spending again.