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Strategies & Market Trends : Waiting for the big Kahuna
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To: bearshark who wrote (33877)11/17/1998 8:43:00 PM
From: bearshark  Read Replies (1) of 94695
 
The following are discount rate cuts
that were made fairly close together
for a period of time. The list does not
include any other type of Fed stimulus
which may have occurred. I was
interested in seeing how often the Fed
moved to lower the discount rate in a
close pattern. The following periods
show the discount rate cut quickly
several times over a relatively short
period of time. The Fed supplies the
data with the year first, the month
second, and the day last. I supplied
the slashes in the dates to make it
easier to read.

I cannot remember the particulars about
the 1970 and 1971 cuts but the 1974
cuts began at the second bottom of
the soul-taker 1973/1974 bear market.
The 1982 cuts began after Volcker
choked inflationary expectations out of
the economy (and nearly choked the
economy to death too) and started a
month before the 1982 -- ??? bull market.

If I can remember correctly, the 1990
cuts were in a fairly miserable time too.
Without using anything else but memory,
it looks like the Fed moves in quick
succession when it is concerned. The Fed
data goes back to 1934 and these seem
like the most dramatic moves.

1970/11/13 5.75
1970/12/04 5.5
1971/01/08 5.25
1971/01/22 5
1971/02/19 4.75

1974/12/09 7.75
1975/01/10 7.25
1975/02/05 6.75
1975/03/10 6.25
1975/05/16 6

1982/07/20 11.5
1982/08/02 11
1982/08/16 10.5
1982/08/27 10
1982/10/12 9.5
1982/11/22 9
1982/12/14 8.5

1990/12/19 6.5
1991/02/01 6
1991/04/30 5.5
1991/09/13 5
1991/11/06 4.5
1991/12/20 3.5
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