At its November 6 meeting, the Federal Open Market Committee lowered the intended federal funds rate 50 basis points (bp) to 2%. Its press release stated that the “necessary reallocation of resources to enhance security may restrain advances in productivity for a time.” Separately, the Board of Governors approved Reserve Bank requests for a 50 bp reduction in the discount rate to 1.5%.
Suggested citation: "Monetary Policy," Federal Reserve Bank of Cleveland, Economic Trends, no. 01-12, pp. 04, 12.01.2001.