🔴 For history and not a call for panic or fear:
• Exactly 17 years ago, the Federal Reserve cut interest rates for the first time after more than 400 days of keeping interest rates. Today, on the same day, September 18, the Federal Reserve will cut interest rates after more than 400 days of keeping interest rates.
- On September 18, 2007, the Federal Reserve held interest rates for 446 days, and when it cut interest rates on September 18, 2007, interest rates were at 5.25%
- On September 18, 2024, the Federal Reserve will have held interest rates for 420 days, assuming it cuts interest rates today, knowing that interest rates are also at 5.25%
• The above holding periods are the longest in history and the second was before the dot-com bubble in 2000, where the holding period was 232 days.
• The chart below using Bloomberg terminal shows the S&P 500 Index from 2006 to 2008 with the sharp decline marked on September 18th.
