2:20pm 11/06/01 Fed cuts rates by 50 basis points By Rex Nutting
The Federal Reserve cut interest rates for the 10th time this year on Tuesday, lowering the fed funds target rate by 50 basis points to 2 percent. The Fed also said risks to the economy remain tilted toward economic weakness, a sign that further rate cuts could be coming in the next few months. The Fed said economic activity was being dampened by "heightened uncertainty and concerns about a deterioration both here and abroad." The Fed said prospects for long-term productivity growth are favorable. The Federal Open Market Committee is slashing rates in an attempt to boost demand in the economy by lowering borrowing costs for consumers and businesses. The U.S. economy is mired in a long slump, centered in over-investment in the business sector and increasing worries in the consumer sector.
