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Strategies & Market Trends : Paint The Table

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To: Augustus Gloop who wrote (21918)3/26/2002 7:54:09 AM
From: AugustWest  Read Replies (2) of 23786
 
This was posted by trippet on the CFZ ewave thread. some good discussion/speculation about ensued about it

The US Federal Reserve in January considered a variety of "unconventional" emergency measures to be taken if cutting short-term interest rates failed to arrest a US recession and prevent Japanese-style deflation. One of those steps may have been a plan to buy US stocks.

According to minutes of its January 25-26 meeting, the Fed's policy-making Open Market Committee agreed "unconventional policy measures might be available" to deal with a situation in which "the economy were to deteriorate substantially in a period when nominal short-term interest rates were already at very low levels", although, it said, the efficacy of such measures was "uncertain". The minutes vaguely mention internal analyses of such a scenario
news.ft.com
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