No Sooner Had Economists rolled out their rosy predictions of modest growth and a record volume of construction work for 2001 than the overall economic environment began to deteriorate. On Jan. 3, Federal Reserve Board Chairman Alan Greenspan responded to growing signs of a cooling economy and stock market jitters with a surprise interest rate cut. The Fed reduced the federal fund target rate on overnight loans between banks to 6% from 6.5%. It was the first rate reduction since 1998 and the first half-point rate cut since 1992.
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