Agricultural and Food Policy
 Agri Outlook Radio
Number 145
Policy/Noteworthy: The Fed Lowers the Federal Funds Rate 75 Basis Points to 2-1/4 Percent (1:39 minutes)
Audio/Video Script:
Dr. Bobby Coats
Extension Economist
University of Arkansas, Division of Agriculture
The Fed lowers its target for the federal funds rate 75 basis points to 2-1/4
percent. I’m Bobby Coats Extension Economist University of Arkansas Division of
Agriculture.
The Federal Open Market Committee decided to lower its target for the
federal funds rate 75 basis points to 2-1/4 percent.
The Federal Reserve was responding to recent information that indicates the
outlook for economic activity has weakened further. They indicated the
following:
- Growth in consumer spending has slowed and labor markets have
softened.
- Financial markets remain under considerable stress, and the
tightening of credit conditions and the deepening of the housing contraction
are likely to weigh on economic growth over the next few quarters.
- The Committee expects inflation to moderate in coming quarters,
reflecting a projected leveling-out of energy and other commodity prices and
an easing of pressures on resource utilization.
The Committee believes their policy actions should help to promote moderate
growth over time and to mitigate the risks to economic activity. They
indicate downside risks to growth remain, but the Committee will act in a timely
manner as needed to promote sustainable economic growth and price stability.
This has been Bobby Coats Extension Economist University of Arkansas Division
of Agriculture.
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