Federal Reserve interest rate reductions this year

By The Associated Press

Changes made this year by the Federal Reserve in its target for the federal funds rate, the interest that banks charge each other on overnight loans:

Jan. 3: First one-half-percentage-point cut since July 1992 and first rate change outside the regular Fed meeting schedule since October 1998. Federal funds rate: 6 percent.

Jan. 31: Second one-half point reduction, the first time since Alan Greenspan became Federal Reserve chairman in August 1987 that the federal funds rate was reduced by a full percentage point in a month. Funds rate: 5.5 percent.

March 20: Third half-point cut. Funds rate: 5 percent.

April 18: Fourth half-point reduction and second rate move this year outside the regular Fed meeting schedule. Funds rate: 4.5 percent.

May 15: Fifth half-point cut. Funds rate: 4 percent.

June 27: First quarter-point reduction in this cycle, leaving funds rate 2.75 percentage points below the 6.5 percent level it held at the beginning of the year. Funds rate: 3.75 percent.

Aug. 21: Second quarter-point reduction, pushing the funds rate to the lowest point since early April 1994. Funds rate: 3.5 percent.

Sept. 17: Sixth half-point cut as the Fed becomes more aggressive following the Sept. 11 terrorist attacks, pushing the funds rate to its lowest level since early 1993. Funds rate: 3 percent.

Oct. 2: Seventh half-point cut, to the lowest level since May 1962. Funds rate: 2.5 percent.

Nov. 6: Eighth half-point cut, to lowest since September 1961. Funds rate: 2 percent.

AP-WS-11-06-01 1433EST