No more Fedspeak on further interest rate cuts Sunday May 25, 11:00 am ET By Jeannine Aversa, AP Economics Writer Fed officials abandon Fedspeak to make clear interest rate unlikely to move lower WASHINGTON (AP) -- Sounding a gong couldn't have made it clearer. Federal Reserve officials are putting out the word that further interest rate cuts are unlikely. Fed Governor Kevin Warsh ditched the central bank's cryptic word tangles and actually waxed poetic. "Even if the economy were to weaken somewhat further, we should be inclined to resist expected, reflexive calls to trot out the hammer again," Warsh said, referring to the Fed's key interest rate. Speaking more central-bankerly, the Fed's No. 2 official, Vice Chairman Donald Kohn, said the current stance of interest-rate policy "appears to be appropriately calibrated for now." Janet Yellen, president of the Federal Reserve Bank of San Francisco, called the current level of rates "appropriate." http://biz.yahoo.com/ap/080525/fed_loud_and_clear.html
Does this mean that easy credit is no longer the answer to all the economic problems that have been caused by easy credit?
They talk big talk now. Real balls of steal. Just wait till Black Tuesday and see how quick their balls of steel turn to pink pussies. Another .5% emergency rate cut. Maybe this one on a Saturday, the week before the next fed meet. LEH will suffer same fate as BSC next week. What a away to kick off Black Tuesdays festivities.
Do you want the Feds to cut rates again? Have they not done enough? Those massive rate cuts have flooded the economy for 2 years to come. It will impact the economy in ways you donot even understand nor I want to explain it.
I just donot donot donot like all this doom and gloom!! Look at all the smiling kids out there. These people are the happiest around, they cannot wait to spend their $600 Prime Minister Bush so kindly donated to us. What more do you want?? I just donot donot donot like you short sellers!!
The fed funds is still at a negative real rate. They're paying banks to take money right now. All the stimulation from the past year is going to come in again this week and bring the dow back above 13000, and $spx above 1410.