Circular
Target for Federal Funds Rate Lowered by 50 Basis Points
November 7, 2001
Circular No. 11395

Discount Rate Reduced by 50 Basis Points

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

The Federal Open Market Committee (FOMC) yesterday lowered its target for the federal funds rate by 50 basis points, to 2 percent. In addition, the Board of Governors of the Federal Reserve System approved a 50 basis point reduction in the discount rate, to 1 ½ percent.

The press releases on the federal funds and discount rate changes are attached.