The autumn of 1998 was the most active season for monetary policy in several years. In the span of seven weeks, the Federal Open Market Committee (FOMC) lowered its target for the federal funds rate in three decrements of 25 basis points each— two at scheduled meetings in September and November and one in the intermeeting period. The latter two changes were coupled with commensurate reductions in the discount rate. At its last meeting on December 22, the FOMC did not alter the intended fed funds rate.
Suggested citation: "Monetary Policy," Federal Reserve Bank of Cleveland, Economic Trends, no. 99-01, pp. 02-05, 01.01.1999.