In August, following the Fed cut in rates, the market immediately took off. By the end of the year, the Dow had risen over 20 percent, breaking 200. In January 1928, the Fed revealed that the volume of broker loans had risen to a record $4.4 billion from $3.3 billion the previous year. By early 1928, the calls on the Fed to do something about the market had become a clamor. The United States had come out of its brief recession, and for the first time since the war, gold was flowing into Europe. Even the pound seemed in better shape. In February 1928, Strong, recognizing that the cut might have
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