Slash Impact

The Fed has once again cut the dollar's interest rate—it's now down to just 4 percent. Its effect on Indonesia is asymmetrical: sluggish exports but no overflowing investments.

May 22, 2001

The US Federal Reserve, or the Fed, certainly has fast reflexes. Whenever Uncle Sam's economy slows down, the American central bank is quick to take monetary measures. Last week, for the fifth time this year, the Fed cut the banking interest rate—this time by half a percent, to 4 percent, the lowest interest rate in the past seven years.

This meets the wishes of local businesses. They are understandably concerned that the business climate

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