The Federal Open Market Committee (FOMC) lowered the intended federal funds rate 50 basis points (bp) to 4% at its May 15 meeting. Its press release cited weakened business profitability as a factor in reduced spending on capital equipment. Separately, the Board of Governors approved Reserve Banks’ requests to lower the discount rate 50 bp to 3.5%.
Suggested citation: "Monetary Policy," Federal Reserve Bank of Cleveland, Economic Trends, no. 01-06, pp. 04, 06.01.2001.