The recent Fed actions will help the economy, but won’t fix all financial market problems, Federal Reserve Bank of Philadelphia president Charles I. Plosser said yesterday. He noted that monetary policy decisions will be made based on “how the economy unfolds.”

“I believe the recent reductions in the level of the federal funds rate target will be supportive of the economic adjustment process and a return to trend growth near the end of this year and on into 2009,” he told the Birmingham Rotary Club, according to text of the speech released by the Fed. “The Fed has been aggressive in making this adjustment in rates, which will mitigate some, but not all, of the problems the economy and financial markets are facing. Some problems will simply take time for the financial markets to work out.”

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