Quote:
Originally Posted by AllStar
Fed keeps cutting inflation is gonna get nuts in the US. then they are gonna have to raise the rates a lot higher.
They should just leave the rates and let the Housing Market work its way through the mess.
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Mmmm.. when it gets to this level, it's very hard to get a balance right. The worst scenario is enable a credit crunch (tho there now is one to a degree and likely to continue) by raising interest rates. That can lead to recession and cause severe damage to many people and industries. At the same time, stuff more liquidity into the market by lowering interest rates and the dollar will drop and imports and oil cost more etc. Either way, it smells a no-win scenario.....