At its March 20 meeting, the Federal Open Market Committee (FOMC) lowered the target federal funds rate 50 basis points (bp) to 5.0%, the third 50-bp cut in 2001. Its press release cited “substantial risks that demand and production could remain soft.” Separately, the Board of Governors approved a 50 bp reduction in the discount rate to 4.5%.
Suggested citation: "Monetary Policy," Federal Reserve Bank of Cleveland, Economic Trends, no. 01-04, pp. 04, 04.01.2001.