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U.S. Federal Open Market Committee Statement: Text

By Washington newsroom +1-202-624-1820

Sept. 18 (Bloomberg) -- The following is the full text of the statement released today by the Federal Reserve:

The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 4 3/4 percent.

Economic growth was moderate during the first half of the year, but the tightening of credit conditions has the potential to intensify the housing correction and to restrain economic growth more generally. Today's action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time.

Readings on core inflation have improved modestly this year. However, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully.

Developments in financial markets since the Committee's last regular meeting have increased the uncertainty surrounding the economic outlook. The Committee will continue to assess the effects of these and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; Charles L. Evans; William Poole; Eric S. Rosengren; and Kevin M. Warsh.

In a related action, the Board of Governors unanimously approved a 50 basis point decrease in the discount rate to 5 1/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve banks of Boston, New York, Cleveland, St. Louis, Minneapolis, Kansas City and San Francisco.

Its all in the price Choccie .... Limpy told me :-)

Sept. 19 (Bloomberg) -- Bank of England policy makers said inflation risks have ``probably receded'' as they unanimously voted to leave the benchmark interest rate unchanged this month.

``The impact of financial market disruption would depend on how long it persisted and how widespread it turned out to be. This was still very unclear,'' the nine-member panel said in minutes of the Sept. 6 decision, published in London today. ``The upside balance of risks to inflation,'' in their Aug. 8 forecasts ``had probably receded. The outlook was now more uncertain.''

Sept. 19 (Bloomberg) -- The Bank of Japan kept interest rates unchanged after the economy shrank last quarter and the U.S. Federal Reserve cut borrowing costs to avert a recession.

Governor Toshihiko Fukui and his policy-board colleagues left the key overnight lending rate at 0.5 percent, the bank said in a statement today in Tokyo. The decision was by an 8-1 vote as Atsushi Mizuno, the only advocate for an increase in July and August, dissented again.

The Fed's acknowledgment that economic growth is in jeopardy has ramifications for Japan because the U.S. is the country's biggest export market. Fukui must also contend with the risk that Prime Minister Shinzo Abe's resignation last week will make the government less able to spur growth and stamp out deflation.

The 9 members of the MPC have clearly neglected to look at the price of crude if they think they can brush inflation under the carpet just like that. Coffee anyone?

One sugar please.

what happened to melnibone?

"The BoE's governor Mervyn King faces a grilling by MPs tomorrow, and markets will be sensitive to any comments that may provide direction to future interest rate policy."

It's been a bit quiet on here lately. The Dollar's starting to look a bit overcooked again, imo. It's interesting to note that, whilst the Euro has surged to new multi-year highs, cable has failed to test the 2.0650 high.

Couldn't you do a leopard skin print Hils?

h, do your charts give us a clue to your nail colour today?

Crystal Lilac 65 to match my lippie, G.

Sorry about the colour of the charts. The leopard print background sounds so cool. Maybe Delboy could have a word with his friend Kathy ........

H, I'll see what I can do . . .

If you can get Kathy to produce some leopard print charts, Delboy, you can have my babies. I'll bring them round tomorrow.

:o)

The painters have been in and we have a new header.

Has anyone checked out Interbank FX for Trading?

Is that Taupe Hils?

No idea, Seymour. I simply threw a dart at my laptop and that's the colour it landed upon. Unfortunately, I've also now got a hole in the screen.

:o(

Could've been worse, could've been your lap :-)

All I know is it's far better than that pinkish-kinda thing. ;-))

Ha