California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

The Federal Reserve Open Market Committee reduced interest rates by half a point to
3.00 percent.  This is the second time in less than eight days the Federal Reserve as
taken such action.

The action came a week after an emergency cut of 0.75 percentage points in the face of
a global market rout amid concerns the US economy was headed toward recession.
The panel headed by Fed chairman Ben Bernanke voted 9-1 in favor of the move, with
Dallas Fed chief Richard Fisher favoring no change.
 
In a statement released by the Committee it identified that "Today's policy action, combined
with those taken earlier, should help to promote moderate growth over time and to mitigate
the risks to economic activity," "However, downside risks to growth remain. The Committee
will continue to assess the effects of financial and other developments on economic prospects
and will act in a timely manner as needed to address those risks."

The reduction in rates pleased Wall Street analysts but provided little if any immediate support
to the stock markets.

I am Tim Johnson and this has been the California Business Minute.