The Federal Open Market Committee has cut its target for the federal funds rate by 25 basis points to 2% and indicated that it will try to avoid further cuts even though the credit crunch and housing woes are likely to persist. "The substantial easing of monetary policy to date, combined with ongoing measures to foster market liquidity, should help to promote moderate growth over time and to mitigate risks to economic activity," the Federal Reserve's monetary policy-making committee said. The FOMC also noted that it remains concerned about inflation, as "some indicators of inflation expectations have risen in recent months." Two committee members voted against the most recent cut, indicating that they preferred no cut be made.
Processing Content
