The Federal Open Market Committee (FOMC) changed the federal funds rate target at its June 29 meeting to 5.00%, an increase of 25 basis points. The discount rate remained unchanged at 4.5%. The change in the federal funds rate target was the first since last fall, when the FOMC lowered rates 75 basis points in response to threatening financial market conditions.
Suggested citation: "Monetary Policy," Federal Reserve Bank of Cleveland, Economic Trends, no. 99-07, pp. 02-03, 07.01.1999.