Fed cuts interest rates

Nov. 6, 2002
The Federal Reserve Board cut interest rates by a half-point Wednesday, the first cut in 11 months. Wall Street analysts had expected a cut of only 25 basis points, which equals a quarter of a point. The cut drops the federal funds rate, which is the rate of interest banks charge each other for overnight loans, to 1.25%. In cutting rates for the first time in 11 months, Fed chairman Alan Greenspan
The Federal Reserve Board cut interest rates by a half-point Wednesday, the first cut in 11 months. Wall Street analysts had expected a cut of only 25 basis points, which equals a quarter of a point.

The cut drops the federal funds rate, which is the rate of interest banks charge each other for overnight loans, to 1.25%.

In cutting rates for the first time in 11 months, Fed chairman Alan Greenspan and his colleagues recognized that their insistent rate-cutting spree last year was not enough to generate a sustained economic recovery.

Last year, the Fed issued 11 cuts that lowered rates to a 40-year low, but this year it has been reluctant to act. At their August meeting, the Fed indicated that it was aware leaving the rates unchanged would weight the risks toward conditions that may generate economic weakness.

About the Author

Tim Parry

Sponsored Recommendations

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

How Electric Vehicles Help You Prolong the Life of Your Fleet

Before adopting electric vehicles for commercial/government fleets, prioritize cost inquiries. Maintenance is essential; understand the upkeep of EV fleets. Here’s what you need...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!