The FOMC said that it judged the downside risks to growth to have increased appreciably and stated that it was prepared to act as needed to mitigate adverse effects on the economy arising from the disruptions in financial markets.
At the same time, the Board of Governors announced that it had approved a 50 basis point reduction in the primary credit rate at the discount window, to 5-3/4 percent, to promote the restoration of orderly conditions in financial markets.