Friday, December 21, 2018

Federal Reserve Rate Hike

December 11, 2007 - the Fed reduces the Fed Funds rate from 4.5% to 4.25%.
December 19, 2018 - the Fed increases the Fed Funds rate from 2.25% to 2.5%.

Note that in the first case, the rate is reduced and in the second it is increased, but these are converging.  Especially if you take into account that by March 18, 2008, the rate was reduced to 2.25%.  If the Fed reduces rates by 1/4 percent in March then these will match exactly.

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