Why did the federal reserve lower interest rates in 2001
Federal Reserve Interest Rate Changes: 2000-2008 Marc Labonte and Gail E. Makinen Government and Finance Division Summary The Federal Open Market Committee (FOMC) decided on March 18, 2008, to lower the target rate for federal funds to 2¼% from 3½%, its third reduction in less than a month. The Federal Reserve's decision to cut interest rates by a quarter point for the third time this year is meant to bolster the economy.. Everyday Americans may lose some ground.