BUZZ-US regional banks up after Fed cuts interest rates

** Shares of regional U.S. lenders up after Federal Reserve cut benchmark interest rate for the first time in four years

** US Bancorp USB.N, Fifth Third Bancorp FITB.O, M&T Bank MTB.N, Keycorp KEY.N, Western Alliance WAL.N rise between 0.3% and 1.6%

** KBW Banks Index .BKX up 0.2%

** Rate cut is expected to reignite the loan demand and deals activity which will take away the heat off from rising deposit costs for these lenders that even led to several bank runs

** Fed cut interest rates by half of a percentage point on Wednesday, kicking off what is expected to be a steady easing of monetary policy

(Reporting by Jaiveer Singh Shekhawat in Bengaluru)

((JaiveerSingh.Shekhawat@thomsonreuters.com;))