WASHINGTON (MarketWatch) -- The Federal Reserve's half-a-percentage point rate cut on Sept. 18 may be enough to keep the economy from sinking from the financial market turmoil, said Donald Kohn, the vice-chairman of the Fed Board on Friday. "But pending further evidence, a 50-basis-point easing was not an unreasonable first approximation of what might be required to keep the economy on a sustainable growth path," Kohn said in a speech to the Greater Philadelphia Chamber of Commerce. It would be better for the Fed to respond "too much or too rapidly" to the turmoil in financial markets rather than acting "too little or too slowly," Kohn said. With recent favorable inflation news, Kohn said he believes the Fed could reverse the recent rate cut if it turned out to be larger than needed. Oh really ???? What surprise !!!!
The rate cut they did was too much, they should raise them up another .25 come next meeting based on todays employment numbers and that revision made for august. There was no need for 50 BP cut last month.
they will cut another 50 bp as his friend at Goldman want Dollar down a lot. Nobody trusts Bernanke anymore