Cannon Trading Futures Blog: Daily Support and Resistance Levels

The Federal Open Market Committee decided today to lower its target
for the federal funds rate 50 basis points to 4-3/4 percent.

Economic growth was moderate during the first half of the year, but
the tightening of credit conditions has the potential to intensify
the housing correction and to restrain economic growth more
generally.  Today's action is intended to help forestall some of
the adverse effects on the broader economy that might otherwise
arise from the disruptions in financial markets and to promote
moderate growth over time.

Readings on core inflation have improved modestly this year.
However, the Committee judges that some inflation risks remain,
and it will continue to monitor inflation developments carefully.

Developments in financial markets since the Committee's last
regular meeting have increased the uncertainty surrounding the
economic outlook.  The Committee will continue to assess the
effects of these and other developments on economic prospects
and will act as needed to foster price stability and sustainable
economic growth.

Voting for the FOMC monetary policy action were: Ben S. Bernanke,
Chairman; Timothy F. Geithner, Vice Chairman; Charles L. Evans;
Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Frederic
S. Mishkin; William Poole; Eric Rosengren; and Kevin M. Warsh.

In a related action, the Board of Governors unanimously approved
a 50-basis-point decrease in the discount rate to 5-1/4 percent.
 In taking this action, the Board approved the requests submitted
by the Boards of Directors of the Federal Reserve Banks of Boston,
New York, Cleveland, St. Louis, Minneapolis, Kansas City, and San
Francisco.