WASHINGTON — As widely anticipated, The Board of Governors ofthe Federal Reserve has cut its target for the federal funds rate25 basis points to 4-1/4%, though some are disappointed that thecut was not deeper.

“Incoming information suggests that economic growth is slowing,reflecting the intensification of the housing correction and somesoftening in business and consumer spending,” the Fed said in itsrate cut announcement. “Moreover, strains in financial markets haveincreased in recent weeks. Today's action, combined with the policyactions taken earlier, should help promote moderate growth overtime.”

In a related action, the Board of Governors unanimously approveda 25-basis-point decrease in the discount rate to 4-3/4%.

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