Sage Advice Quarterly Market Review 2Q1997

Although it was one of its most telegraphed actions ever, the Fed’s, quarter-point increase in the funds rate on March 25 still rocked the bond market, sending the 30-year yield decisively over the 7 percent “resistance” threshold. What threw the market into a tizzy was not the actual rate hike itself, but the wording of the communique that accompanied it. In essence, the Fed’s rationalization for its actions put to rest any quaint notion that it was implementing a “one-off” preemptive strike against inflation that should do the job for the remainder of the cycle.

  • DATE: June 30, 1997
  • TYPE: PDF

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