We viewed the faster downshift in economic activity, in part a consequence of the technology-enhanced speed and volume of information flows, as  BIS Review 66/2001  3  calling for a quicker pace of policy adjustment.
Acting on that view, we have lowered the federal funds rate 2¾ percentage points since the turn of the year, with last month's action leaving the federal funds rate at 3¾ percent. Most long-term interest rates, however, have barely budged despite the appreciable reductions in short-term rates since the beginning of the year.