Fed’s Recent Moves

Mar 19

Finance Add comments

As illustrated in a beautiful New York Times graphic:

Fed's Bag of Tricks

Note: Yesterday the Fed lowered the Fed Funds Rate a further .75% to 2.25% and the S&P rose to 1330.74 up 54.14.

Joe

Augustine Says:
March 21st, 2008 at 3:57 pm
What amazes me is that one rate cut after the other did nothing but just have a short-term effect, without changing the general trend down. Meanwhile, the money supply is inflated, bad investment can still find cheap capital. If this were an infallible recipe, Japan wouldn’t have spent a decade with a rate of 0%, effectively a negative rate if inflation is considered). Then again, the next election is considered a short-term milestone, so wrecking the economy is what the Fed will keep on doing.

JoeTaxpayer