Of course, based on the three data points you cited, and analyzing the impact on your model of the economy, they took the wrong action. However, the FED has done quite a bit more work on econometric modeling, and their models tell them that the risk to growth is greater then the risk of inflation. I'm going to have to go with the FED on this one. Please tell us more about your models!
triple witching is what the US economy is getting and there nothing you can do to stop it. lowering the interest rates just confirms the doom..
Models? I thought the depreciation of the dollar, rising inflation, heavy levels of govt debt, and a trade deficit were enough. What kind of model could the FED possibly have used here?! His name is "Helicopter Ben" for crying out loud....that's not a name of reason...it's a name of bias.
At least as good as the best data and best talent that said Saddam had WMDs, which seemed like a pretty damn good reason for taking the action they did.
EXACTLY!!! You just said it yourself. Now explain to me why the fed cut rates. The economy is doing fine...so we cut rates? Stock...I always took you as a very educated individual, but I have to say this time you're not making sense. No. What we do is we bail out housing in a rational way instead of taking this kind of action.
You can't equate the FED's data to CIA inteligence data. Well....YOU can...but the two are not even remotely the same.
As I've said.....they are smarter then you, they know more then you, they have better data, stop being a tool, and start thinking about how you will trade and make money in this environment. BTW....read their policy statement and they make it pretty clear what their concerns are going forward!