Rate cuts only beginning of cycle

Professional Adviser
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The furore over the US Federal Reserve's cut in interest rates may be over but the key is now to judg...

The furore over the US Federal Reserve's cut in interest rates may be over but the key is now to judge when the current easing cycle may be over, according to Rupert Della-Porta, head of North American Equities, Aberdeen Asset Management. The Federal Reserve Board last night cut the Fed Funds rate by 0.5% to 4.0%, the lowest rate since May 16, 1994 when it was 3.75%. This is the fifth 0.5% easing since the beginning of the year and at 2.5% in just over 4 months represents the most aggressive easing cycle since December 1982 when the Fed cut the discount rate 2.5% in four months. Della...

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