Federal Reserve Stands Pat

January 31, 2002

Open Market Committee Decides To Keep Short-Term Rates At 1.75 Percent


Inman News Features

The Federal Reserve Board?s Open Market Committee decided today to keep its target for the federal funds rate unchanged at 1.75 percent, sending financial markets higher.

The more symbolic discount rate, which the Fed charges banks for overnight loans, will stay at 1.25.

In releasing its decision, the committee stated:

"Signs that weakness in demand is abating and economic activity is beginning to firm have become more prevalent. With the forces restraining the economy starting to diminish, and with the long-term prospects for productivity growth remaining favorable and monetary policy accommodative, the outlook for economic recovery has become more promising . . ."

The committee had made 11 rate cuts totaling 4.75 percentage points over the past 13 months.

The Dow Jones Industrials jumped on the news, moving up 108 points after opening lower. The Nasdaq Composite was higher, up 15 points, near the end of the trading session.

Copyright: Inman News Service


Contact ALTA at 202-296-3671 or communications@alta.org.

SoftPro, based in Raleigh, NC, offers a mature suite of products, designed specifically for the closing and title industry. Our mission is to serve our client base, with best-in-class products and services. Our products are modular so we don't force you to buy anything you don't need. You can always add on as your business grows. Unlike other software companies, we view the sale as the beginning of the relationship rather than the end. North American Title Insurance Company (NATIC) is a seasoned title insurance underwriter, helping title agents to achieve their individual business goals for more than 50 years. Today, the company conducts real estate settlement services in 39 states and the District of Columbia through a network of experienced, independent agents.