Fed takes late action to cut money costs

"The Federal Open Market Committee has decided to lower its target for the federal funds rate... The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth... incoming information indicates a deepening of the housing contraction as well as some softening in labor markets."

"...it will be necessary to continue to monitor inflation developments carefully."

Appreciable 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.