5 October 2001, 10:08  OVERNIGHT FOMC rate cut decisions unanimous

WASHINGTON (FWN) - The Federal Open Market Committee decisions to cut rates on Aug 21 and Sept 17 were unanimous, according to a summary of the August meeting and Sept conference call released by the central bank. The Aug 21 vote ended a string of dissents by one 'hawkish' FOMC member at the May and June FOMC meetings. In May, Thomas Hoenig, the president of the Kansas City Fed, voted against the FOMC's 50 basis point rate cut and in June, William Poole, the president of the St Louis Fed voted against the 25 basis point reduction. In both cases, the dissenters said they were worried that the FOMC had already eased monetary policy enough. But according to the minutes of the Aug 21 meeting, the FOMC members were suprised to find that the economy had deteriorated in July and August.

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