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Investing January 30, 2002
Easing Interest Cycle Grinds to a Halt
January 30, 2002 (PLANSPONSOR.com) - The Federal
Open Market Committee decided to leave the Fed funds interest
rate unchanged at 1.75%, reasoning that the outlook for
economic recovery appeared more promising.
Reported by Camilla Klein
After a two-day meeting, the Federal Reserve’s year long easing cycle came to a halt when the FOMC left the rate at which banks lend to banks at its 40-year low.
In it’s statement, the FOMC noted that economic weakness, not inflation, was the main threat facing the US economy.
The discount rate also remained the same at 1.25%