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Strategies & Market Trends : Asia Forum

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To: Worswick who wrote (6877)10/2/1998 5:11:00 PM
From: Michael Sphar  Read Replies (2) of 9980
 
A Fed interest rate retrospective:

In Sept 1990 the FED began cutting interest rates with prime previously stable at 8%. It made 7 cuts in 8 months with the 3rd and 5th cuts being of 50 basis point variety, the rest being more typical .25% cuts. Later in 1991 it cut 6 more times in successive months finally bringing the rate down to 4%. By Sept 1992 it hit a bottom rate of 3% which lasted for almost 1.5 years till Jan 1994.

Will the FED wait till the next FOMC meeting or will it act in the interim after earnings are better understood ?

Just an idle mind toying with things this fine Friday afternoon.

Regards,
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