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Bob Dylan is in the Power Station, New York City, working on tracks for his album Infidels. Mark Knopfler is acting as co-producer and also plays guitar on the album. On this day, Dylan works on the song Neighbourhood Bully.
In a ceremony held at The White House, Washington DC, USA, Bill Monroe is recognised by President Ronald Reagan at "the only living American credited with originating an American music form" (i.e. bluegrass music). Frank Sinatra is also in the White House attending this event.