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Is 75 the New 25? Fed Policy as Fashion Statement

On Jan. 22, the Bernanke Fed broke with its, and the Greenspan Fed?s, past of moving gradually in predominantly 25 basis point, or quarter percentage point, rate moves by delivering a 75 basis point rate cut followed by 50 basis points nine days later.
Vincent Reinhart, a scholar at the American Enterprise Institute and, until last fall, a senior staffer at the Fed who helped advise on such decisions, thinks this signals a shift in how the Fed executes monetary policy.
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