SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Currencies and the Global Capital Markets
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Robert Douglas who wrote (2780)12/29/2000 3:05:21 PM
From: Robert Douglas  Read Replies (1) of 3536
 
Another reason that I think the Fed will act soon and swift is the global economic picture. They cannot let a normal cyclical downturn in the U.S. turn into a worldwide recession. That would create too many problems, especially for many emerging economies.

To avoid this, the demand that will be lost from the U.S. must be made up abroad. The sooner the Fed cuts here, the sooner central banks around the world can follow suit without fear of weakening their currencies. As always, there is a lag between monetary policy and its effects. If the Fed waits until they see the whites of the recession's eyes (e.g. rising unemployment) it may be too late to forestall a global slowdown.

I believe they made a mistake by not cutting in December and they know it. They will cut a half point at the end of January and it will be followed by more cuts until the FF rate is below 5%, perhaps 4%. This, I believe, will be enough to prevent recession.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News