Economy: June 29, 2001
The Federal Reserve lowered short-term interest rates by a quarter point in an effort to stimulate consumer and business spending; this marked the sixth time this year the Fed has lowered interest rates; at 3.75, the federal funds rate—used for overnight bank lending—is now at its lowest level since 1994; many commercial banks followed the Fed’s lead by reducing the prime rate to 6.75 for their most creditworthy business customers.
