WASHINGTON (Dec. 19, 2000)—The U.S. Federal Reserve today decided to keep interest rates steady but noted that the economy is slowing and warned of the risk of a sharp downturn—a statement interpreted by many as signaling that the central bank is preparing to cut rates soon.
Fed watchers expect this to occur as early as Jan. 1, but some express concern that any delay could put the Fed at a disadvantage in stimulating economic growth.