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Breaking News

The Federal Reserve Cuts Interest Rates

Aired November 06, 2001 - 14:20   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
AARON BROWN, CNN ANCHOR: Tim O'Brien is at the Treasury and he's got an open phone...

TIM O'BRIEN, CNN FINANCIAL CORRESPONDENT: Down one half a point, the Fed cuts interest rates one half a point to two percent, the lowest in 40 years.

In a statement, the Fed said: "Heightened uncertainty and concerns about a deterioration in business conditions both here and abroad are dampening economic activity. For the foreseeable future, then, the committee continues to believe that the risks are weighted mainly towards conditions that may generate economic weakness."

The Fed went on to say, "The long term prospects of productivity growth and the economy remain favorable and should become evident once the -- quote -- "unusual forces" restraining demand abate.

Again, the Fed cuts interest rates one half a point to two percent, the lowest in 40 years.

Reporting live from the Treasury Department, I'm Tim O'Brien.

BROWN: Tim, thank you very much.

Tim was at the treasury. And you heard the announcement -- a half a point cut in interest rates, the 10th this year.

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