1991
- Desert Storm's Liberation of Kuwait
With a Republican in the White House and a Republican in
charge of the Federal Reserve,
we would normally expect
interest rates to be lowerer as the Presidential Election gets
closer. We would not
have been wrong thinking that in 1991. Discount Rate cuts are
designed to boost the stock
market and boost business activity.
Date
Discount
Rate
----------------
------------------------------------------------------
12/19/1990
6.50% Helped
turn market back up.
2/1/
1991
6.0%
4/30/1991
5.5%
Drop in rates in on-going bull market
9/13/1991
5.0%
Drop in rates in on-going bull market
11/6/1991
4.5%
Drop in rates in on-going bull market
12/20/1991
3.5%
Drop in rates in on-going bull market