2007, that is.
Interest rates slashed to help economy
Fed's dramatic action lowers target on key short-term rate for the first time in 4 years - to 4.75% - and signals more cuts could be coming.
NEW YORK (CNNMoney.com) -- The Federal Reserve cut the target on a key short-term interest rate by half of a percentage point Tuesday to 4.75% in a bold acknowledgement that the central bank is concerned the mortgage meltdown plaguing Wall Street and Main Street could hurt the economy. The Fed also indicated that more rate cuts could be on the way, news that investors cheered. Stocks surged following the announcement.
From: https://money.cnn.com/2007/09/18/news/economy/fed_rates/index.htm
Commentary: I think the Fed is following a script and will announce cuts of half a percentage today. To be updated with the breaking news later today.
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Update:
Jumbo-sized rate cut: Fed slashes rates by a half percentage point
By Bryan Mena, Elisabeth Buchwald and Krystal Hur, CNN
Updated 5:09 PM EDT, Wed September 18, 2024
What we're covering here
In a significant shift for the US economy, the Federal Reserve announced a jumbo-sized rate cut Wednesday, its first rate reduction cut since Covid. It’s a major economic milestone both for the central bank’s long fight with inflation and for Americans battling a higher cost of living for the past two years.
From: https://www.cnn.com/business/live-news/federal-reserve-interest-rate-09-18-24/index.html
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Future rate cut schedule:
FOMC Meeting Cut New Rate
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Sep. 18, 2024 -50 4.75%
Oct. 31, 2024 -25 4.50%
Dec. 11, 2024 -25 4.25%
Jan. 22, 2025 -75 3.50%
Jan. 30, 2025 -50 3.00%
Mar. 18, 2025 -75 2.25%
Apr. 30, 2025 -25 2.00%
From: https://www.forbes.com/advisor/investing/fed-funds-rate-history/
(I just took the historical dates in 2007 and 2008 and added 17 years to them).
The recession will start on December 1, 2024 if the 17-year cycle continues to repeat.
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