At its September 24 meeting, the Federal Open Market Committee (FOMC) left the federal funds rate target unchanged at 1.75%, citing “robust underlying productivity growth” as the basis for maintaining monetary policy’s current stance. However, the Committee expressed concern over the extent and timing of the economic recovery, stating that “the risks are weighted mainly toward conditions that may generate economic weakness.” The dissenters, Governor Gramlich and President McTeer, preferred reducing the federal funds rate target.
Suggested citation: "Monetary Policy," Federal Reserve Bank of Cleveland, Economic Trends, no. 02-10, pp. 04, 10.01.2002.