Target for Federal Funds Rate Lowered to 6 Percent; Discount Rate Reduced to 5 ¾ Percent
January 3, 2001
Circular No. 11304

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.