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Target for Federal Funds Rate Lowered by 50 Basis Points
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January 31, 2001
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| Circular No. 11317 | |
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Discount Rate Reduced by 50 Basis Points To All Depository Institutions in the Second Federal Reserve District: At its meeting today, the Federal Open Market Committee decided to lower its target for the federal funds rate by 50 basis points, to 5½ percent. In addition, the Board of Governors of the Federal Reserve System approved a 50-basis-point reduction in the discount rate, to 5 percent. The announcement indicated that "consumer and business confidence has eroded further, exacerbated by rising energy costs that continue to drain consumer purchasing power and press on business profit margins."
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