The Federal Government lowers the federal funds rate to 3%

This article is taken from their website located at http://www.federalreserve.gov/newsevents/press/monetary/20080130a.htm

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

Financial markets remain under considerable stress, and credit has tightened further for some businesses and households.  Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets.

The Committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully.

Today's policy action, combined with those taken earlier, should help to promote moderate growth over time and to mitigate the risks to economic activity.  However, downside risks to growth remain.  The Committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks.
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For more information please go to their website at http://www.federalreserve.gov/default.htm

Ed Bates
Wasatch First Financial
MLoans.net

801.330.4964 cell
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