i feel the fed fears deflation first and foremost. The idea of the consumer starting to pullback on spending will create a strong deflationary pressure. The fed is simply desperate, they have no idea if this will work, but they have no choice as they are racing the clock, and so they still must do everything they can do to keep the consumer spending.
The last thing the fed will EVER say ever, is, well, to be frank we are damned worried, if this doesn't work, we are screwed.
But they can talk about going to 1%, the fact is, they have no more bullets.
They will say it will work, but they have no idea what is going to happen.
BTW, banks hate this, you think they like lending at these rates; i think not.Max |
