Change in the discount rate.
The Federal Reserve Board announced on February 1, 1991, a reduction in the discount rate from 6 1/2 percent to 6 percent, effective immediately.
Action was taken in light of further declines in economic activity, continued sluggish growth trends in money and credit, and evidence of abating inflationary pressures, including weakness in commodity prices.
In taking the action, the Board voted on requests submitted by the boards of directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Richmond, Chicago, Kansas City, and Dallas. The Board subsequently approved similar requests by the boards of directors of the Federal Reserve Banks of Cleveland, St. Louis, Minneapolis, and San Francisco. The actions for the Reserve Banks of Cleveland, Minneapolis, and San Francisco were effective February 1. The St. Louis change was effective February 4. Also on February 4, the Federal Reserve Board approved action by the board of directors of the Federal Reserve Bank of Atlanta to reduce the discount rate of that bank from 61/2 to 6 percent, effective February 4.
|Printer friendly Cite/link Email Feedback|
|Title Annotation:||Announcements; Federal Reserve Board|
|Publication:||Federal Reserve Bulletin|
|Date:||Mar 1, 1991|
|Previous Article:||Martha R. Seger: resignation as a member of the Board of Governors.|
|Next Article:||Income and expenses of the Federal Reserve Banks.|