Economist: Fed to Keep Rate at 1% For 18 Months, But Then Raise It

Vadum, Matthew
August 2003
Bond Buyer;8/13/2003, Vol. 345 Issue 31698, p5
Trade Publication
Focuses on a prediction made by chief economist of FTN Financial, a Memphis-based division of First Tennessee Bank, regarding the decision of U.S. Federal Reserve Board's Open Market Committee to keep the funds rate at 1.0% for 18 months and then raise it as of August 13, 2003. Reason behind the committee's decision to keep a stable fund rate for a certain period; Circumstances under which the committee will cut the rate; Prediction for the growth in Gross Domestic Product.


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