At its September 29 meeting, the Federal Open Market Committee (FOMC) lowered the federal funds rate target to 5.25%, a decline of 25 basis points. Chairman Greenspan initiated a further decline of 25 basis points roughly two weeks later, on October 15, lowering the target rate to 5.0%. This second decline in the federal funds rate target was accompanied by a decrease from 5.0% to 4.75% in the discount rates charged by Federal Reserve district banks.
Suggested citation: “Monetary Policy,” Federal Reserve Bank of Cleveland, Economic Trends, no. 98-11, pp. 02-03, 11.01.1998.