WASHINGTON (Aug. 22, 2001) — In yet another effort to jumpstart the sluggish U.S. economy, the Federal Reserve cut interest rates yesterday.
It was the seventh time this year that rates have been slashed, and the Fed indicated it could make further reductions if the economy continues to struggle.
The central bank's chairman, Alan Greenspan, announced a second consecutive reduction of one-quarter of 1 percent in the Fed's key benchmark interest rate. However, according to the Chicago Tribune, a number of analysts believe at least one and possibly several interest-rate reductions may still be required to bring about an economic revival.
While the latest rate decrease had been anticipated by financial markets, it marked a total of 3 percent so far this year that the Fed has cut short-term interest rates.