FED Cuts 25bps — FED Funds and Discount Rate
New FED Funds rate 2.00%
New Discount Rate 2.25%
The FOMC’s statement says financial markets remain under considerable stress, labor markets have softened, and the deepening housing contraction is “likely to weigh.”
There is some indication that inflation expectations have risen in recent months. Energy and other commodity prices have increased, the FOMC noted. The FOMC still expects a leveling-out of energy and other commodity prices.
The FOMC calls its recent policy actions “substantial” and says it will continue to monitor economic and financial devleopments and will act as needed to promote sustainable economic growth and price stability.
Dissenters: Fisher, Plosser (no surprise there)