Fed lowers interest rates

Northwestern Financial Review, Dec 1-Dec 14, 2002

Following a string of recent weak economic reports, the Federal Reserve cut rates by 50 basis points, lowering the federal funds rate to 1.25 percent. The Fed also cut the discount rate by 50 basis points to 0.75 percent. "Incoming economic data have tended to confirm that greater uncertainty, in part attributable to heightened geopolitical risks, is currently inhibiting spending, production and employment.

Inflation and inflation expectations remain well contained," the Fed said in a statement.