Between January and November of 2001, the FOMC reduced the target federal funds rate from 6½ to 1¾.A reason for this was that the FOMC:

Question

Quizplus · Accepted Answer

The FOMC was acting preemptively to stimulate the economy and prevent a recession after the dot-com bubble burst and the 9/11 terrorist attacks. This is evidenced by the gradual reduction of the federal funds rate over the course of 11 months.

Between January and November of 2001, the FOMC Reduced the Target