October 2 · Published November 8, 2001
Statement·Presser·Minutes
AGAlan GreenspanOctober 2, 2001 FOMC Minutes
Our reading
The minutes are consistent with the statement because both documents describe the Federal Open Market Committee's decision to lower the federal funds rate by 50 basis points to 2-1/2 percent, driven by heightened economic uncertainty and downside risks following the September 11 terrorist attacks, while also noting the favorable long-term prospects for productivity and growth.
Our reading compares the minutes of the October 2 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Roger W. Ferguson, Jr.
- Edward M. Gramlich
- Alan Greenspan
- Thomas M. Hoenig
- Edward W. Kelley, Jr.
- William J. McDonough
- Laurence H. Meyer
- Cathy E. Minehan
- Michael H. Moskow
- William Poole
From the minutes
FOMC minutes
It was agreed that the next meeting of the Committee would be held on Tuesday, November 6, 2001.
The meeting adjourned at 12:30 p.m.
Donald L. Kohn
Secretary
What changed from the previous meeting’s minutes
- Federal funds rate target reduced from 3 percent to 2.5 percent.
- Discount rate cut by 50 basis points to 2 percent.
- Next meeting scheduled for November 6, 2001, instead of October 2.
- Swap lines with ECB, Bank of Canada, and Bank of England established or enlarged post-September 11.
- September 17 intermeeting action cut federal funds rate by 50 basis points to 3 percent.
- Risk statement retained, weighted toward economic weakness.
Summary generated automatically from the two documents.