(Read more on the debt and equity markets.)
NEW YORK CITY-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, according to the Federal Reserve. Yesterday's action by the Federal Open Market Committee to lower its target for the federal funds rate 50 basis points to 4.8% 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, according to a Federal Reserve release.
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, the release notes. Developments in financial markets since the committee's last regular meeting have increased the uncertainty surrounding the economic outlook.
The release explains that the committee "will continue to assess the effects of these and other developments on economic prospects." The committee will also "act as needed to foster price stability and sustainable economic growth."
Voting for the FOMC monetary policy action were Ben Bernanke, chairman; Timothy F. Geithner, vice chairman; Charles L. Evans; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; William Poole; Eric 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 5.25%.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
