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WASHINGTON (MarketWatch) -- The Federal Reserve said it's cut the
discount rate to 5.75%, down from 6.25% previously, in a move aimed at
narrowing the gap between the discount rate and the federal funds rate,
the target for which reaims at 5.25%. "Financial market conditions have
deteriorated, and tighter credit conditions and increased uncertainty
have the potential to restrain economic growth," the policy-setting
Federal Open Market Committee said in a statement. Accordingly, the
FOMC said it "judges that the downside risks to growth have increased
appreciably." Fed officials are "monitoring the situation" and are
"prepared to act as needed to mitigate the adverse effects on the
economy arising from the disruptions in financial markets," the FOMC
said. Stock futures, which had been broadly lower before the Fed's
announcement, turned high almost immediately
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