FOMC Cuts 75 bps
The Fed cut 75 bps to 2.25%, Plosser & Fisher dissenting for a lesser cut of 50 bps.
The Board of Governors unanimously also approved a 75 bps decrease in the discount "window" rate to 2.5%.
Key excerpts from the FOMC statement:
Recent information indicates that the outlook for economic activity has weakened further.
Growth in consumer spending has slowed and labor markets have softened.
Financial markets remain under considerable stress, and the tightening of credit conditions and
the deepening of the housing contraction are likely to weigh on economic growth over the next few quarters.
Inflation has been elevated, and some indicators of inflation expectations have risen.
Uncertainty about the inflation outlook has increased. Downside risks to growth remain.
The Board of Governors unanimously also approved a 75 bps decrease in the discount "window" rate to 2.5%.
Key excerpts from the FOMC statement:
Recent information indicates that the outlook for economic activity has weakened further.
Growth in consumer spending has slowed and labor markets have softened.
Financial markets remain under considerable stress, and the tightening of credit conditions and
the deepening of the housing contraction are likely to weigh on economic growth over the next few quarters.
Inflation has been elevated, and some indicators of inflation expectations have risen.
Uncertainty about the inflation outlook has increased. Downside risks to growth remain.
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