WASHINGTON — In a move which some have criticized as not deep enough, the Federal Open Market Committee of the Federal Reserve cut its target for the federal funds rate 25 basis points to 4.25%.
"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 4.75%.
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