Circular
Target for Fed Funds Rate Lowered; Discount Rate Reduced
June 25, 2003
Circular No. 11523

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

The Federal Open Market Committee (FOMC) today lowered its target for the federal funds rate by 25 basis points, to 1 percent. In addition, the Board of Governors of the Federal Reserve System approved a 25 basis point reduction in the discount rate, to 2 percent.

The FOMC’s statement is available on the Federal Reserve Board’s website.

The Board's discount rate action was taken at the requests of the boards of directors of the Federal Reserve Banks of Boston, New York, St. Louis, Kansas City, and San Francisco.