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Fed History Shows Punch Bowl Goes as Jobs Rise: Cutting Research

An improving labor market rather than accelerating inflation made the Federal Reserve decide to end its last three episodes of easy monetary policy. It may be about to happen again, says Barclays Plc strategist Barry Knapp.

He looked back to May 1983, February 1994 and the February-to-August period of 2004 to see what prompted the U.S. central bank to tighten policy, which former Fed chief William McChesney Martin likened to taking away the punch bowl just as the party gets going.