US Federal Reserve makes fresh rates adjustment
Friday, 5 January 2001The US Federal Reserve Board last night lowered its discount rate by a further quarter point to 5.5% in an expected technical adjustment.
The Fed on Wednesday cut the largely symbolic discount rate, which it charges member banks that borrow from it, from 6% to 5.75%, and made the further cut after the markets closed at the request of the regional Federal Reserves.
Some commentators believe this will deepen worries that the US economy may be in a worse condition than thought.
The US central bank on Wednesday reduced its benchmark federal funds rate by a half a point to 6% in an aggressive action aimed at reviving US economic momentum.
The fed funds rate, the target figure used by commercial banks among themselves, affects the cost of credit throughout the economy and is used by the Fed to control the pace of growth.
