From Staff Reports
U.S. Federal Reserve Governor Randall Kroszner yesterday (Monday) assured investors that the central bank would take the necessary steps to protect the economy and to foster growth.
"The Federal Reserve will continue to monitor developments in financial markets and act as needed to support the effective functioning of these markets and to foster sustainable economic growth and price stability," Kroszner said.
The central bank official's remarks came during a speech at the Institute of International Bankers and followed a shaky market opening, as well as a 336-point plunge in the Dow Jones Industrial Average on Friday.
Economists are divided as to whether or not the Federal Reserve will cut its key interest rate at next week's two-day policymaking meeting. Chairman Ben S. Bernanke led the charge for a half-point reduction last month as the credit turmoil drove investors to despair. It was the first reduction in the benchmark Federal Funds Rate in more than four years.
After dropping close to a hundred points in early morning trading the Dow rallied to close in positive territory.