Re: the Fed

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

until the early 1950s, the fed had no discretion over interest rates.
Rates were kept low beginning with the wartime period to reduce the costs
of debt for the treasury.  I suspect that they still felt rather
circumspect about increasing rates at the time.  just guessing.

On Tue, Jun 24, 2003 at 02:04:55PM -0700, Ian Murray wrote:
> Fed Set to Cut Rates to 45-Year Lows
> By Glenn Somerville
> Reuters
> Tuesday, June 24, 2003; 2:33 AM
>
>
> WASHINGTON - The U.S. Federal Reserve, seeking to rev up a slow recovery
> while keeping price deflation at bay, is universally expected to cut
> interest rates to 1958 lows this week.
>
>
> =================
>
> What was going on in 1958 that necessitated low rates?
>
>
>
> Ian

--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael@xxxxxxxxxxxxxxxxx