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The Honolulu Advertiser
Posted on: Wednesday, June 27, 2001

Early announcement expected

 •  Amount of Fed cut debated

Associated Press

The Federal Reserve's decision on interest rates is expected to be announced about 8:15 this morning Hawai'i time.

Economists generally believe that the Fed will move to cut its target federal funds rate — the rate at which banks borrow from one another — but disagree on whether it will be a quarter-point or half-point reduction. Whatever the cut, consumers can expect that it will bring down borrowing costs on goods and services in virtually every sector of the economy.

Mortgage lenders may further shave interest on long-term home loans, although analysts say rates cannot fall very much further. Banks will move to cut their prime lending rates, so small businesses also will find short-term borrowing costs lower.