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Investing August 21, 2001
Fed Cuts Rates by 25 Basis Points
August 21, 2001 (PLANSPONSOR.com) - In a bid to
revive sluggish US economic growth, the Federal Reserve cut
its key federal funds interest rate by a quarter of a
percentage point.
Reported by Camilla Klein
The cut to 3.50% was widely expected by the market, and marks the seventh time this year that the Fed made cuts to loosen monetary policy, including two inter-meeting slashes in January and April.
So far, this has done little to buoy a market beaten down by negative news, lackluster economic data and earnings disappointments.
And while this latest cut may leave investors equally unimpressed, many will try to read between the lines of the FOMC’s accompanying statement for clues on the Fed’s next move.
In anticipation of the announcement, the market had climbed modestly in early trading, with financials rising across the board.