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The Fed Has More Cutting to Do By Rich Miller,BusinessWeek 11/8/01
If Greenspan & Co.'s favored inflation index is any guide,
we can expect more rate reductions -- sooner rather than later
Federal Reserve Chairman Alan Greenspan and his fellow
central bankers look to be pulling out all the stops in
their efforts to get the economy moving again. They've cut
short-term interest rates 10 times this year, by a whopping
4½ percentage points. The latest reduction, a half-point
cut on Nov. 6, left the overnight interbank federal funds
rate at a mere 2%, its lowest level in four decades. The
largely symbolic discount rate, the rate the Fed charges on
emergency loans to private banks, is even lower, at 1½.
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Alan Greenspan
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