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

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The FOMC was acting preemptively by reducing the target federal funds rate in order to support economic growth and prevent a potential recession in the future. The FOMC believed that the economy was facing several risks, including slowing growth, rising unemployment, and declining inflation. By cutting interest rates before these risks became a reality, the FOMC hoped to stimulate economic activity and prevent a deeper downturn.

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