toxic
11-07-2007, 03:08 PM
Further rate cuts will accelerate the decline of the dollar.
Maybe Bush hopes to blame all of our economic mismanagement on the Chinese! Their statement may provide the cover they needed.
http://www.reuters.com/article/companyNewsAndPR/idUSNAT00339820071107
Fed's Poole says further rate cuts may be needed
MILWAUKEE (Reuters) - St. Louis Federal Reserve President William Poole on Wednesday said further interest rate cuts might be needed if problems in the housing market spread further, but said the Fed needs to be wary not to overshoot and risk stoking inflation.
Poole said the ongoing decline in the housing market would likely have a "modest" impact on U.S. economic growth, but the risk of a bigger impact could not be discounted.
"It could be that the downdraft from the housing industry will spread to other sectors, which might require that recent rate cuts not be reversed, or even that additional cuts would be in order," Poole said in a speech at Marquette University.
"The loss of wealth associated with the decline in housing prices, as well as the fact that mortgage payments will absorb a larger portion of disposable income for some consumers, might cause consumption -- the largest component of GDP -- to grow at a significantly slower rate," he said. ...
Maybe Bush hopes to blame all of our economic mismanagement on the Chinese! Their statement may provide the cover they needed.
http://www.reuters.com/article/companyNewsAndPR/idUSNAT00339820071107
Fed's Poole says further rate cuts may be needed
MILWAUKEE (Reuters) - St. Louis Federal Reserve President William Poole on Wednesday said further interest rate cuts might be needed if problems in the housing market spread further, but said the Fed needs to be wary not to overshoot and risk stoking inflation.
Poole said the ongoing decline in the housing market would likely have a "modest" impact on U.S. economic growth, but the risk of a bigger impact could not be discounted.
"It could be that the downdraft from the housing industry will spread to other sectors, which might require that recent rate cuts not be reversed, or even that additional cuts would be in order," Poole said in a speech at Marquette University.
"The loss of wealth associated with the decline in housing prices, as well as the fact that mortgage payments will absorb a larger portion of disposable income for some consumers, might cause consumption -- the largest component of GDP -- to grow at a significantly slower rate," he said. ...