Figures for fiscal 2010 and fiscal 2011 were revised downward by 0.5 percentage point and 0.1 percentage point, respectively, from the forecasts in July.
The prudence of these moves in the funds rate may ultimately depend on one's diagnosis of what ails the real economy, the risk to that diagnosis, expected benefits of changes in wealth and the cost of capital to businesses and households, and the effect of a lower federal funds rate on the sum of credit availability to the real economy.