Thu, Oct 9 2008, 07:23 GMT
by BBVA Bancomer Team
FOMC Policy Action October 8, 2008
The Federal Open Market Committee has decided to lower its target for the federal funds rate 50 basis points to 1-1/2 percent. The Committee took this action in light of evidence pointing to a weakening of economic activity and a reduction in inflationary pressures.
Incoming economic data suggest that the pace of economic activity has slowed markedly in recent months. Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit. Inflation has been high, but the Committee believes that the decline in energy and other commodity prices and the weaker prospects for economic activity have reduced the upside risks to inflation.
The Committee will monitor economic and financial developments carefully and will act as needed 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; Elizabeth A. Duke; Richard W. Fisher; Donald L. Kohn; Randall S. Kroszner; Sandra Pianalto; Charles I. Plosser; Gary H. Stern; and Kevin M. Warsh.
In a related action, the Board of Governors unanimously approved a 50-basis-point decrease in the discount rate to 1-3/4 percent. In taking this action, the Board approved the request submitted by the Board of Directors of the Federal Reserve Bank of Boston.
Published on Thu, Oct 9 2008, 10:14 GMT
BBVA Bancomer
| Av. Universidad 1200 Col. Xoco México 03339 D.F.
http://www.bancomer.com/economica | e.economicos@bbva.bancomer.com
Daily Global Commentary - What's so Paradoxical about Thrift? by Northern Trust
Tue, Dec 2 2008, 22:21 GMT
Insights Market Outlook - Monetizing the Debt by Merk Hard Currency Fund
Tue, Dec 2 2008, 13:39 GMT
Daily Market Report - The Australian dollar rallied after the RBA lowered rates by 100bp (25bp more than anticipated) to 4.25% by Wachovia
Tue, Dec 2 2008, 13:30 GMT
Flash Comment - USA: Bernanke ready to take further steps by Danske Bank A/S
Tue, Dec 2 2008, 11:27 GMT
Market Session Snap-Shot - Asian Session - Equity Selling Continues by ACM - Advanced Currency Markets
Tue, Dec 2 2008, 10:13 GMT
fed, centralbanks, interestrate
View AllBig Thai rate cut seen after airport siege, CPI data
Thomson Financial News | Wed, Dec 3 2008, 04:51 GMT
UPDATE 1-Rate cut a 'mistake' if prices high-Indonesia cbank
Thomson Financial News | Wed, Dec 3 2008, 04:27 GMT
UPDATE: Pakistan May Hike Rates Soon If Reserves Weak - IMF
Dow Jones | Wed, Dec 3 2008, 04:02 GMT
FACTBOX-U.S. Fed policy-makers' recent comments
Thomson Financial News | Tue, Dec 2 2008, 23:18 GMT
UPDATE 2-Fed extends terms of 3 liquidity programs to April
Thomson Financial News | Tue, Dec 2 2008, 22:14 GMT
fed, centralbanks, interestrate
View AllFXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)
[Read Premium full description]