Federal Reserve Board Press Release
Release Date: July 6, 1995


For immediate release

Chairman Alan Greenspan announced today that the Federal Open Market Committee decided to decrease slightly the degree of pressure on bank reserve positions.

As a result of the monetary tightening initiated in early 1994, inflationary pressures have receded enough to accommodate a modest adjustment in monetary conditions.

Today's action will be reflected in a 25 basis point decline in the federal funds rate from about 6 percent to about 5-3/4 percent.