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Fed takes cautious view on markets amid downgrade

A trader works on the floor at the New York Stock Exchange (NYSE) in New York City

A trader works on the floor at the New York Stock Exchange on Monday.

NEW YORK � Federal Reserve officials speaking on Monday took on cautiously the ramifications of the latest downgrade of the government’s credit rating and unsettled market conditions as they continued to navigate a very uncertain economic environment.

"We will put that downgrade in the same perspective that we do with all incoming information: What are the implications of this in terms of us achieving our mandated goals without commenting on what that downgrade might mean in sort of a political economy context," Fed Vice Chair Philip Jefferson said at a conference held by the Federal Reserve Bank of Atlanta.



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