On June 27, the Federal Open Market Committee (FOMC) lowered the intended federal funds rate 25 basis points (bp) to 3.75%, citing “declining profitability and business capital spending, weak expansion of consumption, and slowing growth abroad” as reasons for the rate cut. In a related action, the Board of Governors approved Reserve Bank requests to reduce the discount rate 25 bp to 3.25%.
Suggested citation: "Monetary Policy," Federal Reserve Bank of Cleveland, Economic Trends, no. 01-07, pp. 04, 07.01.2001.