The Fed faced exactly such a complication in the second week of April, when it contemplated an emergency cut in its key Federal funds rate. At the time, April 11, U.S. stock prices were sinking and investors widely expected the Fed to make an immediate cut in the funds rate. The Fed waited a week for stock prices to stabilize before delivering a half-percentage point cut in the funds rate on April 18. The cut sent stock prices soaring. He said the Bush administration's attitude towards the Fed compares favorably with that of the Clinton administration.
Early indications point to a continued excellent relationship with the new administration.
Inc. All Rights Reserved. All rights reserved.