•  
  • New York 19:57
  • London 00:57
  • Barcelona 01:57
  • Tokyo 09:57
  • Sydney 11:57

  • SignUp | Login

US: FedWatch

0

0

FOMC Policy Action October 8

Thu, Oct 9 2008, 07:23 GMT
by BBVA Bancomer Team

BBVA Bancomer


  • • FOMC lowered its target interest rate by 50bp to 1.5%
  • • The move is part of a global joint effort to alleviate financial stress around the world
  • • Fed movement was widely expected by market participants
  • • Fed recent communication and today’s action confirm that downside risks to growth have increased dramatically
  • • Further rate cuts cannot be ruled out if conditions worsen

Press Release

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


Archive

BBVA Bancomer  | Av. Universidad 1200 Col. Xoco México 03339 D.F.
http://www.bancomer.com/economica | e.economicos@bbva.bancomer.com

Legal disclaimer and risk disclosure

This document was prepared by Banco Bilbao Vizcaya Argentaria’s (BBVA) Research Department on behalf of itself and its affiliated companies (each a BBVA Group Company) for distribution in the United States and the rest of the world and is provided for information purposes only. The information, opinions, estimates and forecasts contained herein refer to that specific date and are subject to changes without notice due to market fluctuations. The information, opinions, estimates and forecasts contained in this document have been gathered or obtained from public sources believed to be correct by the Company concerning their accuracy, completeness, and/or correctness. This document is not an offer to sell or a solicitation to acquire or dispose of an interest in securities.

Related reports

Trichet departs Sydney in a hurry by Interactive Brokers LLC
Tue, Feb 9 2010, 13:09 GMT

Risk appetite firms on potential policy measures by the ECB to limit contagion from the Greek crisis by TradeTheNews.com
Tue, Feb 9 2010, 10:57 GMT

Forex - Trichet Off to Brussels & Markets in a Wait & See Pattern by ACM - Advanced Currency Markets
Tue, Feb 9 2010, 10:49 GMT

Trichet Leaves Sydney Early by ACM - Advanced Currency Markets
Tue, Feb 9 2010, 09:58 GMT

Has the impact of the Greek situation run its course? by Saxo Bank
Tue, Feb 9 2010, 07:05 GMT

fed, centralbanks, interestrate

[ View All ]

Related content


Interested in forex trading? forex brokerage firms!


ACM Advanced Currency Markets SA
Contact the broker/FDM
Open a demo account
FOREX.com
Contact the broker/FDM
Open a demo account
Alpari (UK) Limited
Contact the broker/FDM
Open a demo account		City Credit Capital (UK) Ltd
Contact the broker/FDM
Open a demo account		CitiFX Pro
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2010 "FXstreet.com. The Forex Market" All Rights Reserved.