A necessary element of surprise

Headline: A necessary element of surprise Source: EuromoneyDate: May 2001         Greenspan The Federal Reserve caught the markets off their guard when it slashed the Federal Funds rate by half a percentage point on April 18. It was the fourth reduction this year and the second time since January 3 that the […]

Headline: A necessary element of surprise
Source: Euromoney
Date: May 2001

       
Greenspan
The Federal Reserve caught the markets off their guard when it slashed the Federal Funds rate by half a percentage point on April 18.

It was the fourth reduction this year and the second time since January 3 that the US central bank has cut the key overnight rate between meetings of its Federal Open Market Committee. “The April move clearly was a shocker,” says David Greenlaw, an economist at Morgan Stanley.





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