FOMC Expected To Keep Fed Funds Rate Target At 1%

ByJohn S. McClenahen Unless the 12 members of the Federal Open Market Committee have detected some profound weakness in the U.S. economy that's eluding virtually every business economist, they'll leave the target federal funds rate at 1% when they meet on Sept. 16. The influential federal funds rate is the interest banks charge each other on overnight loans, and it has been at 1% since June 25. Chairman Alan Greenspan and his FOMC colleagues have two additional meetings scheduled for this year -- Oct. 28 and Dec. 9 -- and, barring some wholly unexpected economic development, it's unlikely that the panel will adjust the federal funds rate target again this year.