By contrast, the rate cut of 50 basis points  5  That the Federal Reserve has only been formally announcing its policy moves since 1994 added a measure of complexity to our research.
Before then, market participants generally did not become aware of the FOMC's policy decisions until those decisions were actually implemented in the market for bank reserves, often the day after the FOMC decision. To the extent possible, we dated the policy change as of the day that the market would have become aware of it, not the day of the decision itself.