« $700 billion buys a lot of bad debt | Main | Base Rate Cut Could Boost Mortgage Market »
By admin | October 30, 2008
In a unanimous decision, the Fed dropped its key fed funds target to 1% from 1.5%, while the discount rate fell to 1.25% from 1.75%. "The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures," it said. The Fed hinted it may not be done with rate cuts: "... downside risks to growth remain. The Committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability." New in its statement were its reference to "slowing economic activity in many foreign economies" that "is damping the prospects for U.S. exports," and its more dovish stance on inflation, which it now "expects" to moderate.
Topics: Daily Updates |
Comments
You must be logged in to post a comment.