[1stMarylandRegiment]

I don't remember a tightening cycle in 1997. I don't remember a tightening cycle in 1987 either.

The Federal Reserve Bank of New York is a good enough resource for me.

Federal Reserve Bank of New York

Fed Funds Rate Aug 1986 was 5 7/8 - Dec 1987 was 9 3/4.

1997 is more complex. In the face of disinflationary Federal Budget surpluses the Fed tightened to HOLD RATES UP. Recall that Chmn. Greenspan made the "irrational exuberance" speech in Dec. 1986. Reading the Annual Report of the Fed for 1997, one can see that, even though Fed Funds stayed in a range of 5 1/4 to 5 1/2, reserves declined approximately 30% during the year.

Both circumstances are evidence of Fed tightening.

[Toddsterpatriot]

The Federal Reserve Bank of New York is a good enough resource for me.

Thanks for the link.

Fed Funds Rate Aug 1986 was 5 7/8 - Dec 1987 was 9 3/4.

You misread, Aug 1986 was 5 7/8, Sept 1987 was 7 1/4. Not much of a tightening cycle. The Dow managed to rise 46% over that period.

Reading the Annual Report of the Fed for 1997, one can see that, even though Fed Funds stayed in a range of 5 1/4 to 5 1/2, reserves declined approximately 30% during the year.

I couldn't find that report. Link?