U.S. Federal Open Market Committee Statement: Text
2008-03-18 14:15 (New York)
March 18 (Bloomberg) -- The following is the full text of
the statement released today by the Federal Reserve:
The Federal Open Market Committee decided today to lower
its target for the federal funds rate 75 basis points to 2 1/4
percent:
Recent information indicates that 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. The Committee expects
inflation to moderate in coming quarters, reflecting a projected
leveling-out of energy and other commodity prices and an easing
of pressures on resource utilization. Still, uncertainty about
the inflation outlook has increased. It will be necessary to
continue to monitor inflation developments carefully.
Today's policy action, combined with those taken earlier,
including measures to foster market liquidity, should help to
promote moderate growth over time and to mitigate the risks to
economic activity. However, downside risks to growth remain.
The Committee will act in a timely manner as need to promote
sustainable economic growth and price stability.
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; Gary H. Stern; Kevin M. Warsh. Voting against were
Richard W. Fisher and Charles I. Plosser, who pursued less
aggressive action at this meeting.
In a related action, the Board of Governors unanimously
approved 75 decrease in the discount rate to 2.5 percent. In
taking this action, the Board approved the requests submitted by
the Boards of Directors of the Federal Reserve Banks of Boston,
New York and San Francisco.
--Washington newsroom +1-202-624-1820. Editor: Brendan Murray
[TAGINFO]
March 18 (Bloomberg) -- The following is the full text of
the statement released today by the Federal Reserve:
The Federal Open Market Committee decided today to lower
its target for the federal funds rate 75 basis points to 2 1/4
percent:
Recent information indicates that 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. The Committee expects
inflation to moderate in coming quarters, reflecting a projected
leveling-out of energy and other commodity prices and an easing
of pressures on resource utilization. Still, uncertainty about
the inflation outlook has increased. It will be necessary to
continue to monitor inflation developments carefully.
Today's policy action, combined with those taken earlier,
including measures to foster market liquidity, should help to
promote moderate growth over time and to mitigate the risks to
economic activity. However, downside risks to growth remain.
The Committee will act in a timely manner as need to promote
sustainable economic growth and price stability.
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; Gary H. Stern; Kevin M. Warsh. Voting against were
Richard W. Fisher and Charles I. Plosser, who pursued less
aggressive action at this meeting.
In a related action, the Board of Governors unanimously
approved 75 decrease in the discount rate to 2.5 percent. In
taking this action, the Board approved the requests submitted by
the Boards of Directors of the Federal Reserve Banks of Boston,
New York and San Francisco.
--Washington newsroom +1-202-624-1820. Editor: Brendan Murray
[TAGINFO]
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