Money and Financial Markets
Short-term Treasury yields plummeted immediately after the September 11 terrorist attacks and have declined further since then, at least for maturities longer than three months. Much of the initial decrease showed that actual and anticipated cuts in the target federal funds rate had already been priced in. Stock indexes also performed fairly well after dropping steeply the first week after the New York Stock Exchange reopened.
Suggested citation: "Money and Financial Markets," Federal Reserve Bank of Cleveland, Economic Trends, no. 01-11, pp. 05-07, 11.01.2001.