FOMC directive and discount rate decrease. (Announcements).The Federal Open Market Committee decided on December 11,2001, to lower its target for the federal funds rate Federal Funds Rate The interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight. by 25 basis points to 1 3/4 percent. In a related action, the Board of Governors approved a 25 basis point reduction in the discount rate to 1 1/4 percent. Economic activity remains soft, with underlying inflation likely to edge lower from relatively modest levels. To be sure, weakness in demand shows signs of abating, but those signs are preliminary and tentative. The Committee continues to believe that, against the background of its long-run goals of price stability and sustainable economic growth and of the information currently available, the risks are weighted mainly toward conditions that may generate economic weakness in the foreseeable future. Although the necessary reallocation of resources The provision of logistic resources by the military forces of one nation from those deemed "made available" under the terms incorporated in appropriate NATO documents, to the military forces of another nation or nations as directed by the appropriate military authority. to enhance security may restrain advances in productivity for a time, the long-term prospects for productivity growth and the economy remain favorable and should become evident once the unusual forces restraining demand abate abate v. to do away with a problem, such as a public or private nuisance or some structure built contrary to public policy. This can include dikes which illegally direct water onto a neighbors property, high volume noise from a rock band or a factory, an improvement . In taking the discount rate action, the Federal Reserve Board approved the 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, Chicago, 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 Federal Reserve Board also approved action by the board of directors of the Federal Reserve Bank of St. Louis, decreasing the discount rate at the bank from 1 1/2 percent to 1 1/4 percent, effective Wednesday, December 12, 2001. On December 13, 2001, the Federal Reserve Board approved actions by the boards of directors of the Federal Reserve Banks of Cleveland, Richmond, Atlanta, Minneapolis, Kansas Minneapolis, Kansas, is a city in Ottawa County, Kansas, United States. The population was 2,046 at the 2000 census. It is the county seat of Ottawa CountyGR6. City, and Dallas, decreasing the discount rate at the banks from 1 1/2 percent to 1 1/4 percent, effective immediately. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion