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Ever interest rate hike caused a recession ... except in 1994
New York Fed ^

Posted on 02/23/2009 11:08:36 PM PST by WheresMyBailout

1995

Dec 19 -1/4 5 1/2

Jul 6 -1/4 5 3/4

Feb 1 +1/2 5 1/4 +1/2 6

1994

Nov 15 +3/4 4 3/4 +3/4 5 1/2

Aug 16 +1/2 4 +1/2 4 3/4

May 17 +1/2 3 +1/2 4 1/4

Apr 18 +1/4 3 3/4

Mar 22 +1/4 3 1/2

Feb 4 +1/4 3 1/4

1993

No changes

(Excerpt) Read more at newyorkfed.org ...


TOPICS: Business/Economy; Your Opinion/Questions
KEYWORDS: 1994; economichistory; fedfunds; greenspan; vanity
If any economists, or those that have studied economics or finance, can opine ...

Why didn't the interest rate hike in 1994 cause a recession? Is their some validity to perhaps quickly raising interest rates, but slowly decreasing inerest rates over time? Maybe Greenspan was more on the ball than we like to admit.

1 posted on 02/23/2009 11:08:36 PM PST by WheresMyBailout
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To: WheresMyBailout

Interest rates don’t work in a vacuum, as well you know. Greenspan gets hammered today because he missed what the Dems were doing with Fannie Mae and Freddie Mac.


2 posted on 02/23/2009 11:13:34 PM PST by txnativegop (God Bless America! (NRA-Endowment))
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To: WheresMyBailout
Why didn't the interest rate hike in 1994 cause a recession?

The Republican revolution was in full swing and people had more confidence in Washington?

3 posted on 02/24/2009 2:57:05 AM PST by Caipirabob (Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: Caipirabob

Exactly , tax cuts and more economic freedom more than made up for the increases in interest rates .


4 posted on 02/24/2009 3:39:29 AM PST by Neidermeyer
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