On November 17, the Federal Open Market Committee (FOMC) again lowered its target for the federal funds rate. On the same day, the Board of Governors approved Reserve Banks’ requests to lower their discount rates. In each case, the drop was 25 basis points, bringing the federal funds rate target to 4.75% and the discount rate to 4.50%. This was the third reduction in policy rates since the August FOMC meeting.
Suggested citation: “Monetary Policy,” Federal Reserve Bank of Cleveland, Economic Trends, no. 98-12, pp. 02-04, 12.01.1998.