Economy: Oct. 5, 2001
The Federal Reserve lowered the benchmark federal-funds interest rate a half percentage point to 2.5 percent in an effort to bolster the economy by prompting consumers to spend and businesses to borrow; the cut marks the eighth this year and brings the short-term interest rate down to 1962 levels...U.S. manufacturing activity fell for the 14th month in a row, according to the National Association of Purchasing Management, which found that its index dropped from 47.9 to 47.0 in August; any index above 50 is considered growth.
