Tunica,
You don't define a recession by inflation or unemployment, technically. It's defined by 2 Q's of lower economic growth.
The metrics are a little fuzzy for defining a recession, and it depends on which economist you talk to, but that's a generally accepted perspective.
What was important was the psychological shift that occured yesterday. OTHER than that, what's changed? Nothing. He did 50 basis points 3 weeks before everyone knew he was going to do 50BP. 3 weeks? How does that change things except psychologically (which was sorely needed, I will add). It was needed 6 months ago, and won't be helping the economy for 4-6 months, AT THE EARLIEST.
However, just like the Titanic, you can't steer the ship immediately away from the iceberg. It's too big.
Luckily, and unlike the Titanic, we're not going to sink, but we are now taking on some water. The psychogical boost allows you and me to help by feeling confident to now re-invest, and that will tacitly allow us to feel wealthier, and maybe not be so damn tight with our money (ie spend.....).
Steve |
