Press Release–FOMC statement–August 17, 2007

From The Federal Reserve:

Financial market conditions have deteriorated, and tighter credit conditions and increased uncertainty have the potential to restrain economic growth going forward. In these circumstances, although recent data suggest that the economy has continued to expand at a moderate pace, the Federal Open Market Committee judges that the downside risks to growth have increased appreciably. The Committee is monitoring the situation and is prepared to act as needed to mitigate the adverse effects on the economy arising from the disruptions in financial markets.

They’ve been pumping money into the system the last few days. I believe adjusting discount rates is more a psychological move.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.