Our decisive policy actions were premised on the view that a more gradual reduction in short-term rates could well have failed to contain the financial and economic problems confronting us. For now, policy seems well positioned to promote moderate growth and price stability over time.
We will, of course, be watching the evolving situation closely and are prepared to act as needed to meet our dual mandate. In collaboration with our colleagues at the Treasury, we continue to carefully monitor developments in foreign exchange markets.