Fed Cuts Discount, Funds Rates 50bps

The Federal Open Market Committee dropped the target federal funds rate and the discount rate by 50 basis points at its regular meeting Wednesday. "Financial markets remain under considerable stress, and credit has tightened further for some businesses and households," said the FOMC, the Federal Reserve Board's monetary policy-making panel. "Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets." The Fed can be found on the Web at http://www.federalreserve.gov.