FOMC Policy Statement
Full Statement Twin 25 bps cuts with a neutral forward looking statement.
The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 basis points to 4-1/2 percent.
In a related action, the Board of Governors unanimously approved a 25-basis-point decrease in the discount rate to 5 percent.
Voting against was Thomas M. Hoenig, who preferred no change in the federal funds rate at this meeting.
The pace of economic expansion will likely slow in the near term, partly reflecting the intensification of the housing correction.
Recent increases in energy and commodity prices, among other factors, may put renewed upward pressure on inflation.
The Committee judges that, after this action, the upside risks to inflation roughly balance the downside risks to growth.
The Committee will continue to assess the effects of financial and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth.
The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 basis points to 4-1/2 percent.
In a related action, the Board of Governors unanimously approved a 25-basis-point decrease in the discount rate to 5 percent.
Voting against was Thomas M. Hoenig, who preferred no change in the federal funds rate at this meeting.
The pace of economic expansion will likely slow in the near term, partly reflecting the intensification of the housing correction.
Recent increases in energy and commodity prices, among other factors, may put renewed upward pressure on inflation.
The Committee judges that, after this action, the upside risks to inflation roughly balance the downside risks to growth.
The Committee will continue to assess the effects of financial and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth.
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