Off topic:
Look at THIS. Now we are in a RECESSION, soonly. Geez, I didn't know. Maybe we will have to lower rates in November(vast pools of sarcasm).
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Tuesday October 19, 12:52 am Eastern Time
U.S. stock correction would be gradual--Japan EPA
SINGAPORE, Oct 19 (Reuters) - Seiji Shimpo, Japan's Economic Planning Agency (EPA) Vice Minister for Economic Affairs, said on Tuesday that any downturn in the U.S. stock market would be gradual. "The United States still has room to cut interest rates or boost fiscal spending if it needs to prevent a sharp downturn in stock prices and avoid a recession," Shimpo told Reuters Television.
Speculation that the U.S. stock market's long bull-run is about to end has been rising after Federal Reserve Chairman Alan Greenspan issued an apparent warning to that effect on Thursday evening.
Regarding foreign exchange, Shimpo said the Bank of Japan (BOJ) may have to respond with monetary policy steps if there is a sharp rise in the yen.
''If the yen were to strengthen rapidly, the BOJ may have no choice but to take additional monetary measures,'' Shimpo said.
Shimpo also said that the BOJ's decision to maintain its zero interest rate policy while ensuring that the policy is made more effective was positive for the market, because it showed the central bank's willingness to take more steps if necessary.
Shimpo, who spoke on the sidelines of the World Economic Forum, added that other Asian nations had expressed hope that Japan would continue to provide fiscal support for its economy and act flexibly on monetary policy.
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