In its most aggressive rate-cutting stance ever, the Federal Reserve slashed interest rates 11 times this year. The moves helped drive home mortgages to their lowest levels in 40 years nationally — prompting millions of Americans (including many Tristate residents) to refinance or buy homes, making housing one of the economy's bright spots.

        The Fed, trying to boost a weak economy by spurring consumer and business spending, cut short-term rates 4.75 percentage point since January.

        The latest cut came this month, when the Fed lowered its target rate — the interest banks charge each other for overnight loans — to 1.75 percent. That rate was 6.75 percent in January.

        And economists have not completely ruled out one more quarter point at the Fed's next meeting in early January, but that might occur only if economic data are worse then expected.

        Still, the Fed's action to cut interest rates 11 times was unprecedented. The last times the Fed cut interest rates close to that much in a year was in 1991, when it cut rates 10 times.

        The Fed's action also caused many U.S. banks — including the seven largest in Greater Cincinnati — to lower their prime rate, the benchmark rate for millions of consumer and business loans.

        Those banks have cut their rate from 9.5 percent in January to 4.75 percent as of early December, the level since November 1995.

        Locally, home sales are on track for a record-setting year, despite the recent rise in mortgage rates and concerns about the affect of the Sept. 11 terrorists attack on consumer confidence.

        In Southwest Ohio, which accounts for about 80 percent of the market, sales hit 18,131 through October, up 4.13 percent from 17,412 a year ago, according to the Cincinnati Area Board of Realtors.

        The numbers for the years are up from total sales of 17,963 through October 1999, the area's previous best year.

Tristate gropes to regain economic footing
Big year for big names
Interest rate cuts unprecedented
Tristate by the numbers
Comair still on comeback
Directions changed for local start-ups in 2001
Two local firms maintain pace
Business Notes
Entrepreneurs
Listings of stocks, mutual funds to expand