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Posted by Yapi Kredi Bank in September 17th 2008  
The Fed kept rates unchanged today, a unanimous decision, in line with my expectations—although the call seemed increasingly close as the day progressed, with extreme liquidity hoarding, equity markets in the red and Fed funds futures pricing in a cut with certainty. I strongly believe this was the right move. With the market focused on the risk of new bankruptcies, starting with AIG, cutting rates today would have had little or no impact. Keeping rates on hold can be seen as a sign of

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Filed under: Fundamental