Harvard University is considering spending cuts because the economic (slowdown) may reduce federal grants and the school's (substantial) endowment, President Drew Faust said Monday.
Harvard's (endowment) posted an 8.6 percent return and grew to $36.9 billion in the (fiscal) year that ended June 30. The school, however, lost 12.7 percent on its U.S. stock (portfolio) and 12.1 percent on its foreign (equity) portfolio during that time.
Still, Faust warned in an e-mail to faculty, staff and students that "we must (recognize) that Harvard is not (invulnerable) to the seismic financial shocks in the larger world. Our own economic landscape has been significantly (altered)."
"We need to be prepared to absorb (unprecedented) endowment losses and plan for a period of greater financial (restraint)," she said.