The Federal Open Market Committee (FOMC) maintained the intended federal funds rate at 6.5% on December 19, its final regular meeting of 2000. However, as this issue was going to press, the FOMC cut the intended rate 50 basis points (bp) to 6.0% in an inter-meeting move on January 3, 2001. In a related action, the Board of Governors approved a 25 bp decrease in the discount rate. The FOMC maintained its stance, adopted in December, that the balance of risks facing the U.S. economy is “weighted mainly toward conditions that may generate economic weakness in the foreseeable future.”
Suggested citation: "Monetary Policy," Federal Reserve Bank of Cleveland, Economic Trends, no. 01-01, pp. 02-05, 01.01.2001.