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

“Financial markets remain under considerable stress, and credit has tightened further for some businesses and households,” the Fed said. “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.”

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