Agricultural and Food Policy
 Agri Outlook
Radio
Number 125
Policy: The Federal Open Market Committee Lowered the Federal Funds Rate 50
Basis Points (1:53 minutes)
Audio/Video Script:
Dr. Bobby Coats
Extension Economist
University of Arkansas, Division of Agriculture
The Federal Open Market Committee Lowered the Federal Funds Rate 50 Basis
Points - I’m Bobby Coats Extension Economist University of Arkansas Division of
Agriculture.
The Federal Open Market Committee Lowered the Federal
Funds Rate 50 Basis Points
On January 30, 2008 The Federal Open Market Committee decided to lower its
target for the federal funds rate 50 basis points to 3 percent.
The committee indicated the following:
Today’s policy action, coupled with earlier actions should help
promote moderate growth over time and to mitigate the risks to economic
activity
Downside risks to growth remain
Financial markets remain under considerable stress
Credit has tightened further for some businesses and households.
Recent information indicates a deepening of the housing contraction
as well as some softening in labor markets.
Finally, I expect a bumpy next 4 to 8 weeks, before an intermediate period of
strength emerges. The U.S. President, the Fed, and Congress will continue to
focus on maintenance of growth as will their progressive global counterparts. I
will write more about the stimulus package working through Congress in the
future. Weakness in oil prices may also be in our future at least until global
growth regains some strength and momentum. This would provide U.S. and global
consumers with additional monies to spend and help stimulate a slowing global
economy.
This has been Bobby Coats Extension Economist University of Arkansas Division
of Agriculture.
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