Lots of chatter about the Federal Reserve Meeting next week. Initially there was some thought that there might be no rate cut in December, and then it quickly jumped to a 25-basis-point cut, and now a 50-basis-point is seemingly banked in. And there is even chatter of a possible 75-basis-point cut. Whew, how things change.
There is no real knowing what will happen, but I thought it might be fun to present some data on historical Federal Reserve targets. Here you go:
- The largest single rate increase since 1990 is 75 basis-points (November 1994)
- The largest rate decrease is 50 basis-points (4 times, most recently this fall)
- The longest period with no rate change is 17 months (March 1997 – Sep 1998)
- The most consecutive rate cuts is 7 (Dec 1990 – August 1991)
- The most common meeting outcome is 0 (of course)