Jim Devine wrote:
>>2. Why is the fed "always right"?
>
>(a) because it has the best information
One of the Feds - either the Board or one of the regional banks,
can't remember which - recently did a study comparing the Fed's own
economic forecasts with those of private forecasters. The Fed's
Tom asked:
>1. What is the meaning of this 1/2 point fed rate cut, 4 weeks ahead of
>schedule and the euphoric stock market response?
It may mean that Greenspan shares the intuitive feeling that the US economy
is currently going into a steep recession that I and many others have, and
that it's
Snap quiz:
1. What is the meaning of this 1/2 point fed rate cut, 4 weeks ahead of
schedule and the euphoric stock market response?
2. Why is the fed "always right"?
3. Is there a danger that over reaction in financial markets could undermine
the impact of the rate cut on the real economy?
