September 11, 2004
Why Greenspan Is Staying the Course: Despite a recent dip in inflation, the Fed chief has good longer-term reasons to continue hiking rates (Rich Miller, 9/09/04, Business Week)
When Federal Reserve Chairman Alan Greenspan kicked off his credit-tightening campaign on June 30, there was no question why he was raising interest rates. Inflation was picking up, and the recovery appeared to be on solid ground: Gross domestic product had grown at a 5.3% annual rate over the previous three quarters, and even the sluggish jobs market had finally sprung to life.
Now, though, the case for tightening isn't as obvious.
There was no question why he was doing it but it was pretty obviously wrong? What does that tell us? Posted by Orrin Judd at September 11, 2004 2:10 PM