Fed lowers rates, hedges bets

Professional Adviser
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The Federal Reserve cuts rate by a further 25 basis points but its 'to-be-sure graf' leaves the door open for more action

In journalism, we call it the 'to-be-sure graf.'' It's the paragraph you write after you've set out the major thesis for your story and supported it with facts and quotes. It's a warning to the reader that everything that came before may be all wet. On 11 December, the Federal Reserve included a to-be-sure graf in its statement announcing its decision to lower the overnight federal funds rate by 25 basis points (a smaller cut because there's less critical mass left) to a 40-year low of 1.75%. The discount rate was nicked a quarter point as well to 1.25%, the lowest in more than half...

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