02-27-2008, 12:52 PM
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Confirmed User
Join Date: Aug 2001
Posts: 1,922
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Quote:
Originally Posted by ADL Colin
Can't believe the FED is gonna keep cutting. 88% chance of a 50 point cut in March
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They don't believe inflation is a problem. The U.S. Dollar is in for a rough ride. Stagflation is back in vogue
Quote:
Fed's Vice Chairman Donald Kohn's speech yesterday:
?Even as we respond to forces currently weighing on real activity, we must also set policy to resist any tendency for inflation to increase on a sustained basis. Allowing elevated rates of inflation to become entrenched in inflation expectations would be costly to reverse, constrain our ability to cushion further downward shocks to spending, and result over time in lower and less stable economic expansion. Inflation expectations generally have appeared reasonably well anchored, giving the FOMC room to focus on supporting economic growth. Moreover, as I will explain below, for a variety of reasons, I do not expect the recent elevated inflation rates to persist. In my view, the adverse dynamics of the financial markets and the economy have presented the greater threat to economic welfare in the United States. But the recent information on prices underlines the need to continue to monitor the inflation situation very carefully.?
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