Great news for energy debt issuers: the FOMC has lowered its target fed funds rate to 4.25% and the target discount rate to 4.75%. With energy companies’ strong financial profiles, the 25-basis-point reductions will surely trickle down to their own interest rates. And, energy taps into debt capital have been large and frequent lately. Transocean and EnCana alone raised $12.5B last week in the debt markets. Connacher, Ram Energy and Key Energy Services contributed another $1.9B to the total of more than $15B in debt-capital raises by E&P and oilfield-service companies last week. For more on this, see this issue of Oil and Gas Investor This Week.Oil and Gas Investor This Week.Dec10.07 For the FOMC’s statement on its new fed funds target rate, see the press release below: Release Date: December 11, 2007 For immediate release The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 basis points to 4-1/4 percent. Incoming information suggests that economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending. Moreover, strains in financial markets have increased in recent weeks. Today’s action, combined with the policy actions taken earlier, should help promote moderate growth over time. Readings on core inflation have improved modestly this year, but elevated energy and commodity prices, among other factors, may put upward pressure on inflation. In this context, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully. Recent developments, including the deterioration in financial market conditions, have increased the uncertainty surrounding the outlook for economic growth and inflation. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth. Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Charles L. Evans; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; William Poole; and Kevin M. Warsh. Voting against was Eric S. Rosengren, who preferred to lower the target for the federal funds rate by 50 basis points at this meeting. In a related action, the Board of Governors unanimously approved a 25-basis-point decrease in the discount rate to 4-3/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, and St. Louis.