Interest Rate Cut: 2% to 1.5%
Date:
October 8, 2008
Policy Area:
Monetary Policy
Economic Target:
Financial Institutions
Action Type:
Change in Interest Rate 50 basis point reduction in federal funds rate coordinated with other central banks, including the Bank of Canada, the Bank of England, the European Central Bank, Sveriges Riksbank and the Swiss National Bank.
Source:
Notes:
Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.