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 Boston is a town in Erie County, New York, United States. The population was 7,897 at the 2000 census. The town is named after Boston, Massachusetts.
The Town of Boston is an interior town of the county and one of the county's "Southtowns. , Philadelphia, Richmond, Chicago, Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , 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 San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden . The actions for the Reserve Banks of Cleveland, Minneapolis Cleveland is a neighborhood in the Camden community in Minneapolis. Its boundaries are Dowling Avenue to the north, Penn Avenue North to the west, Lowry Avenue north to the south, and Xerxes Avenue North to the west. To the west of Xerxes Avenue is the suburb of Robbinsdale. , 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 The Federal Reserve Bank of Atlanta is responsible for the 6th District of the Federal Reserve, which covers Alabama, Florida, Georgia, and parts of Louisiana, Mississippi, and Tennessee. to reduce the discount rate of that bank from 61/2 to 6 percent, effective February 4.