Ten Down, 11th Rate Cut Looming?

Jan. 13, 2005
By John S. McClenahen Chairman Alan Greenspan and his colleagues on the Federal Open Market Committee (FOMC) are leaving the door open to an eleventh and presumably, for 2001, final cut in short-interest rates at their next scheduled meeting on ...
ByJohn S. McClenahen Chairman Alan Greenspan and his colleagues on the Federal Open Market Committee (FOMC) are leaving the door open to an eleventh and presumably, for 2001, final cut in short-interest rates at their next scheduled meeting on Tuesday, Dec. 11. On Nov. 6 the FOMC lowered the influential federal funds rate by 50 basis points to 2%, a level last seen in 1961. At the beginning of this year, the federal funds rate was 6.5%. "Heightened uncertainty and concerns about deterioration in business conditions both here [in the U.S.] and abroad are damping economic activity," the FOMC noted in a statement explaining its Nov. 6 action, the tenth cut the committee has made this year. "For the foreseeable future, the committee continues to believe that, against the background of its long-run goals of price stability and sustainable economic growth and of the information currently available, the risks are weighted mainly toward conditions that may generate economic weakness," the statement said. Translated from Greenspanese, that means the FOMC is likely to reduce rates again next month. Whether it's a 25-basis-point cut or larger will depend in major measure upon the industrial production and unemployment numbers to be published between now and Dec. 11.

Popular Sponsored Recommendations

3D Printing a More Efficient Factory Floor

Nov. 16, 2023
Today’s additive manufacturing platforms make it simple to print a wide range of high-performing industrial parts as soon as possible and right where you need them — unlocking...

How to Build Zero-Cost On-Site Solar and Storage Projects

Nov. 25, 2023
The Inflation Reduction Act offers tax credits, incentives, and financing that enable no-cost projects. In Enel’s eBook, discover the critical role that incentives play in your...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Moving Sustainability Forward in Manufacturing

Aug. 9, 2023
This paper presents results of a survey of industrial end users. Respondents provided feedback on a range of topics including their company’s sustainability priorities, current...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!