To All Depository Institutions:
The Federal Open Market Committee decided today to lower its target for the federal funds rate by 50 basis points to 6 percent. In a related action, the Board of Governors of the Federal Reserve System approved a 25-basis-point decrease in the discount rate to 5 ¾ percent, the level requested by seven Reserve Banks (including this Bank).
Both actions were announced in a press release issued by the Board of Governors today. The announcement also indicates that the Board stands ready to approve a further reduction of 25 basis points in the discount rate on the requests of Federal Reserve Banks.