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Fed May See 1995-96 Interest Rate Cuts as Template for Today

  • Officials reduced rates back then as price pressures moderated
  • JPMorgan’s Kasman sees chance lower inflation prompts Fed cut
Bloomberg business news
William Dudley, former president of the New York Fed, says the Fed is united behind Chair Powell.Markets: The Close." (Source: Bloomberg)
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As Federal Reserve Chairman Jerome Powell and his colleagues gather this week for a policy making meeting, some of them will likely have 1995 on their mind.

That was the year that the Fed initiated a mid-course correction in monetary policy, cutting interest rates after a sustained bout of tightening. Now some officials and investors are beginning to wonder if the Fed will again have to ease its stance after raising rates four times in 2018.