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To: Kelvin Taylor who wrote (28740)	1/31/2001 2:34:54 PM
From: Kelvin Taylor	Read Replies (1) \| Respond to of 53068

The Federal Reserve Open Market Committee has issued its announcement on short-term interest rates: The Federal Funds target rate has been lowered from 6.0% to 5.5%. The Discount rate has been lowered from 5.5% to 5.0%. These were the decisions expected by most traders. In its policy statement, the FOMC essentially remarked that it sees a greater risk of recession than inflation (easing bias). The Committee cited further erosion of confidence and weaker retail sales. At this point, the market sees more easing on the horizon. Fed funds futures are pricing in a high likelihood of another 25 basis point cut by April. The next FOMC meeting is scheduled for March 20th and some now expect the next move before that time. Stocks rose today, in anticipation of the announcement. Now that it's official, the major market averages are volatile with a modest upside bias.