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.

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%