Fed alert is panic alert


Will we have inflation and a recession simultaneously?


There were rumours sweeping the markets all morning of a looming interest rate cut from the US.

And the confirmation of that speculation is intrinsically disturbing: some investors will have made a killing…

It hasn’t cut rates as much as three quarters of a percentage point for as long as I can remember. And it made the decision to slash a week before its scheduled meeting.

If it looks like panic at the Fed, smells like panic at the Fed, and quacks like panic at the Fed, well many will say it is panic at the Fed.

And what if the evasive action doesn’t work..?

Calloo, Callay, O frabjous day.

Let’s all run out and buy a house. Or two!

Posted: Tue - January 22, 2008 at 10:24 AM