Tuesday, September 18, 2007
I have no confidence in the Fed to act reasonably
The Federal Reserve is expected to lower interest rates today, but if they don't, the market will go deep into the tank. Ben Bernanke seems reasonable, but that is more than I can say about many of the other members of the board. There are many governors on the board who keep trying to keep wages from recovering to where they were in 2000 and early 2001. They view such a recovery as "inflationary". Yet, it would finish the repair job on the economy. We shall see what happens in not too many hours.