The FOMC voted, and the Fed Funds Rate has now been given a TARGET RANGE of 0% to 0.25%.
The Discount Rate was cut 0.75% and is now at 0.50%.
Some of the statements are as follows:
- Sees rate at exceptionally low levels for some time;
- Labor markets have deteriorated;
- Inflationary pressures diminished appreciably;
- Inflation to moderate in coming quarters;
- Will purchase large quantities of Treasuries;
- Vote: was 10-0 for FED FUNDS rate action;
- Outlook for economic activity has weakened further;
A link to the text of the FOMC statement is here.
The dollar just tanked on this news against foreign currencies.
The 10-Year is now yielding 2.43% and the 30-year Treasury yield came in to a low yield of 2.88% right after the news.
Jon C. Ogg
December 16, 2008