November 26, 2007

HE USED TO KNOW THIS BEFORE HE TOOK THE JOB:

Where the dollar’s decline is taking the world (David Hale, November 22 2007, Financial Times)

[T]he risks in the economy are forcing the Federal Reserve to ease monetary policy at a time when most central banks are reluctant to act.

The Fed has eased twice since September and the odds are high that it will have to ease further in the new year. The housing recession threatens to spread to the hitherto booming non-residential construction sector. Rising petrol prices could depress Christmas retail sales. Ben Bernanke, the Fed chairman, does not want to preside over an election-year recession when the core inflation rate is barely 2 per cent. That could jeopardise his chances of winning a second term in 2010.


Indeed, it's not possible to justify rates this high when inflation is so low.

Posted by Orrin Judd at November 26, 2007 2:34 PM
Comments

"Core Rate?"

If I could factor out food and energy from my budget, OJ, I'd be rich.

But then, given that we've allowed school districts (and states) across the country (esp. IL) create their own tests, lop of their lowest scores, and keep their worst students from even taking the test, even NCLB looks like a success.
____

Other than that Mrs. Lincoln, how was the play?

Posted by: Bruno at November 26, 2007 5:22 PM

You are rich, that's the point. No people at any time have ever worked fewer hours to provide their food and energy supply. The rest is whingeing.

Posted by: oj at November 26, 2007 8:35 PM
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