Full text of U.S. Financial Data : August 23, 2001

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August 23, 2001

USFinancialData
THE WEEK’S HIGHLIGHTS:
s At its August 21 meeting, the Federal Open Market Committee
(FOMC) voted to lower its intended federal funds target rate from
3.75 percent to 3.50 percent. Separately, the Board of Governors
approved a 25-basis-point reduction in the discount rate to 3 percent.
In a press release issued after the meeting, the FOMC noted:
Today’s action by the FOMC brings the decline in the target
federal funds rate since the beginning of the year to 300 basis
points. Household demand has been sustained, but business
profits and capital spending continue to weaken and growth
abroad is slowing, weighing on the U.S. economy. The associated easing of pressures on labor and product markets is
expected to keep inflation contained. Although long-term
prospects for productivity growth and the economy remain
favorable, the Committee continues to believe that…the risks
are weighted mainly toward conditions that may generate
economic weakness in the foreseeable future.
s The Conference Board reported that the index of leading economic
indicators rose 0.3 percent in July. After increasing only three times
between February 2000 and March 2001, the leading index has
increased four consecutive months.
s The trade-weighted value of the U.S. dollar against major currencies
has declined 3.4 percent since the week ending July 11, when the
dollar reached a 15-year high (see back page).

All data are seasonally adjusted unless otherwise indicated.
U.S. Financial Data is published weekly by the Research Division of the Federal Reserve Bank of
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Information in this publication is also included in the Federal Reserve Economic Data (FRED) data base
on the internet at www.stls.frb.org/fred.