WASHINGTON — As widely anticipated, The Board of Governors of the Federal Reserve has cut its target for the federal funds rate 25 basis points to 4-1/4%, though some are disappointed that the cut was not deeper.
“Incoming information suggests that economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending,” the Fed said in its rate cut announcement. “Moreover, strains in financial markets have increased in recent weeks. Today's action, combined with the policy actions taken earlier, should help promote moderate growth over time.”
In a related action, the Board of Governors unanimously approved a 25-basis-point decrease in the discount rate to 4-3/4%.
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