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Release Date: January 30, 2002

For immediate release
The Federal Open Market Committee decided today to keep its target for the federal funds
rate unchanged at 1-3/4 percent.
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 degree of any strength in business capital and household spending, however, is still
uncertain. Hence, the Committee continues to believe that, against the background of its
long-run goals of price stability and sustainable economic growth and of the information
currently available, the risks are weighted mainly toward conditions that may generate
economic weakness in the foreseeable future.
2002 Monetary policy
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Last update: January 30, 2002