On August 24, the Federal Open Market Committee (FOMC) raised the intended federal funds rate and the discount rate by 25 basis points each—to 5.25% and 4.75%, respectively. Although financial markets generally had anticipated the move just prior to the FOMC decision, expectations about the future path of the federal funds rate had fluctuated substantially since the Committee’s previous meeting.
Suggested citation: "Monetary Policy," Federal Reserve Bank of Cleveland, Economic Trends, no. 99-09, pp. 02-05, 09.01.1999.