FOMC Statement - Cuts 50bp

U.S. Federal Open Market Committee Statement: Text2008-01-30 14:14 (New York)
Jan. 30 (Bloomberg) -- The following is the full textof the statement released today by the Federal Reserve: The Federal Open Market Committee decided today tolower its target for the federal funds rate 50 basis pointsto 3 percent. Financial markets remain under considerable stress, andcredit has tightened further for some businesses andhouseholds. Moreover, recent information indicates adeepening of the housing contraction as well as somesoftening in labor markets. The Committee expects inflation to moderate in comingquarters, but it will be necessary to continue to monitorinflation developments carefully. Today's policy action, combined with those takenearlier, should help to promote moderate growth over timeand to mitigate the risks to economic activity. However,downside risks to growth remain. The Committee will continueto assess the effects of financial and other developments oneconomic prospects and will act in a timely manner as neededto address those risks. Voting for the FOMC monetary policy action were: Ben S.Bernanke, Chairman; Timothy F. Geithner, Vice Chairman;Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin;Sandra Pianalto; Charles I. Plosser; Gary H. Stern; andKevin M. Warsh. Voting against was Richard W. Fisher, whopreferred no change in the target for the federal funds rateat this meeting. In a related action, the Board of Governors unanimouslyapproved a 50-basis-point decrease in the discount rate to 31/2 percent. In taking this action, the Board approved therequests submitted by the Boards of Directors of the FederalReserve Banks of Boston, New York, Philadelphia, Cleveland,Atlanta, Chicago, St. Louis, Kansas City and San Francisco. --Washington newsroom +1-202-624-1820. Editor: Chris Anstey