The situation that the US Fed finds itself in is quite the pickle: on the one hand the credit crunch is driving down confidence and activity. On the other hand inflation is becoming a real issue as the price of gas is soaring and imports are becoming increasingly expensive as the dollar dives. So, I know I found it interesting that the Fed lowered rates to spur on demand and in effect throw caution to the wind. One wonders what would Alan Greenspan have done? I suspect, as the master of explaining everything and doing remarkably little, he would have done nothing.
Oh how I wish for the good 'ole days.
DC
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