Hi Catherine,
Anemia stunts the growth if the Hb is chronically low during development, as low oxygen levels do have a negative effect. With thalassemia, there are also bad red blood cells produced that are useless and die early, contributing to the anemia. In addition, there are unmatched alpha globin chains that bind together into tetramers, which cause oxidation throughout the body and can have a harmful effect on the pituitary gland. Rachel actually sounds like a symptomatic thal minor. I would recommend a hemoglobin electrophoresis test to see if a hemoglobin disorder like thal minor is present. Since both girls seem to be affected by anemia, this test will be very helpful in determining if it is a genetic trait or a nutrient absorption problem.