Interest Rate Cuts: 4.25% to 3.5%
Date:
January 22, 2008
Policy Area:
Monetary Policy
Economic Target:
Financial Institutions
Action Type:
Change in Interest Rate 75 basis point reduction in federal funds rate
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.