 |
|
|
|
|
 |
|
« After All That..... | Main | The Rent-to-Own Housing Bailout »
Fed Will Cut Rates
Posted by Chris Farrell on Friday, September 7, 2007
So far, I am in the camp that thinks much of the Wall Street whining and criticsim of Ben Bernanke this past month is misplaced. The Fed has been straightforward in its actions. The Fed stepped up--along with other central banks--and made sure that the global credit squeeze didn't turn into a financial collapse. Many hedge funds and lenders have lost money or gone out of business.
Now, with today's employment report--a decline of 4,000 plus revising down previous months--the Fed will begin a round of benchmark rate cuts at its Septemebr 18 Federal Market Open Committee meeting. The combination of declining home prices and falling employment is worrisome.
Latest posts
Warren BuffettVoted
Policy and a pint
Prediction markets, one last time
Stocks for the long run
Fleeing equity mutual funds
A sobering statistic
Nobel laureates and their money
Other post World War ll depressions
The election
Topics
Latest comments from recent posts
A sobering statistic (1)Ray The Money Man wrote: Chris, I couldn't agree more. Maybe I am just old enough to ... [read]
Other post World War ll depressions (1)
hakiton wrote: In 1985 years - it is good year for traidings, ... [read]
The election (1)
Nigel Eccles wrote: It is in the news media's interest for it to be a close race... [read]
What caused the Great Depression? (1)
Greg Ransom wrote: De Long is lying about Hayek. Hayek never said "depressions... [read]
Third Bank of the United States? (2)
Gene wrote: Some have call a Third Bank of the United States a Marxist p... [read]
Archives
| S | M | T | W | T | F | S |
|---|---|---|---|---|---|---|
| 1 | ||||||
| 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| 9 | 10 | 11 | 12 | 13 | 14 | 15 |
| 16 | 17 | 18 | 19 | 20 | 21 | 22 |
| 23 | 24 | 25 | 26 | 27 | 28 | 29 |
| 30 |
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
Appearances and Worthwhile Events
Policy and a Pint: Health Care HandcuffsMore From
Chris Farrell
Marketplace Money's Money Clip Video
How Alan Helped Ben (BusinessWeek.com)
Other Blogs
Andrew TobiasAngry Bear
Becker-Posner Blog
Brad DeLong
Cafe Hayek
Calculated Risk
Econbrowser
Economics Unbound
Economists View
Financial Rounds
Finance Roundtable
Greg Mankiw's Blog
Hot Property
Marginal Revolution
New Economist
TaxProf Blog
The Big Picture
Vox Baby
Books by
Chris Farrell
Right on the Money!: Taking Control of Your Personal Finances
Deflation: What Happens When Prices Fall
Recommended Books
Against the Gods: The Remarkable Story of Riskby Peter L. Bernstein
A Random Walk Down Wall Street
by Burton Malkiel
The Little Book of Common Sense Investing
by John Bogle
Common Stocks and Uncommon Profits
by Phillip Fisher
The Intelligent Investor
by Benjamin Graham
More Than You Know: Finding Financial Wisdom in Unconventional Places
by Michael Mauboussin
Smart and Simple Financial Strategies for Busy People
by Jane Bryant Quinn
Stocks for the Long Run
by Jeremy Siegel
The Random Walk Guide to Investing: Ten Rules for Financial Success
by Burton Malkiel
The Only Investment Guide You'll Ever Need
by Andrew Tobias
Unconventional Success: A Fundamental Approach to Personal Investment
by David F. Swensen
Comments (1)
September 18, 2007 11:32 AM
Its clear by now that the Feds will cut rates today. Question is "by how much?" Its a toss-off between 25bps and 50bps. While the markets were hoping for a 50bps, the reality is leaning more towards the 25bps mark. Also is this the beginning of a series of rate cuts? While the credit woes continue to rock the market, there are the inflationary pressures to consider with a barrel of oil back to its all time highs of over $81 a barrel. It will be a delicate balancing act for the Feds - we'll see.