Examining Fed Rate Cuts: Historical Magnitudes and Their Macroeconomic Contexts

**Year-MonthRate CutSuccessful Trigger of Bull Market?**July 1990-25bp (Total -50bp)✔️Context: Following a rapid rate hike cycle, a rate cut of 25bp occurred in July, with another 25bp in February 1991July 1995-25bp❌Context: Despite economic slowdown and a 3% rate cutSeptember 1998-25bp❌Context: Faced with international financial crises, a 3% rate cut was madeJanuary 2001-50bp✔️Context: In response to a stock market crash, a 50bp cut was made, followed by another 50bp, totaling 13% in rate cutsSeptember 2007-50bp✔️Context: Amid a housing crisis, a 50bp cut was made, totaling 10% in rate cutsJuly 2019-25bp❌Context: “Mid-cycle adjustment” rate cut amid economic growth, totaling 3% in rate cutsMarch 2020-50bp✔️Context: Amid the pandemic, a rapid 50bp rate cut occurred, followed by a total 100bp cut by the FOMC

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