tag:blogger.com,1999:blog-5713178645208582139.post1706610788605033227..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Today's Surprise Fed Funds Rate CutDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5713178645208582139.post-33570965086174148432008-01-23T14:34:00.000-06:002008-01-23T14:34:00.000-06:00Brian:Yes, I believe the Fed's low rates were dist...Brian:<BR/><BR/>Yes, I believe the Fed's low rates were distortionary and contributed to the economic imbalances. However, the sustained low rates over from 2002-2004 occurred during rising productivity; today, this is not the case. <BR/><BR/>While I am sympathetic to the view that a recession might be what the U.S. needs to clear the economic imbalances, I do not advocate letting this David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-22916199112029379062008-01-23T11:55:00.000-06:002008-01-23T11:55:00.000-06:00Professor,So your only issue with the Fed's action...Professor,<BR/><BR/>So your only issue with the Fed's action is that it didn't wait a few more days for a meeting?<BR/><BR/>What of the <A HREF="http://bonddad.blogspot.com/2008/01/why-rate-cut-wont-help-pt-ii.html" REL="nofollow">massive household debt</A> accumulated over the past few years of low rates? Isn't that a problem?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-86851756329700393032008-01-22T19:22:00.000-06:002008-01-22T19:22:00.000-06:00Salvatore:My dismay with the rate cut relates to t...Salvatore:<BR/><BR/>My dismay with the rate cut relates to the Fed's irregular timing, not the cut itself. Could not the Fed have waited until the regularly scheduled FOMC next week? The Fed's response makes it appear it is responding to support stock markets, not economic fundamentals. <BR/><BR/>Maybe you are right and the Fed knows something we do not know. <BR/><BR/>Your post reminds me I David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-42078944848797517152008-01-22T16:05:00.000-06:002008-01-22T16:05:00.000-06:00Professor,Based on your 9/14/07 presentation of t...Professor,<BR/><BR/>Based on your 9/14/07 presentation of the policy rate gap analysis with yield spread, isn't a rate cut of at least one percent needed at this time? <BR/><BR/>You state that the Fed may know something that the markets do not know. I humbly submit that the Fed knows something that you already know and have shared with your readers.<BR/><BR/>For these reasons, I do not fully Anonymousnoreply@blogger.com