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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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From: Travis_Bickle11/28/2007 8:12:39 AM
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Federal Reserve monetary policy must be nimble, pragmatic and flexible given uncertainties over how the renewed turmoil in financial markets will effect lending to consumers and businesses, said Fed Vice-Chairman Donald Kohn on Wednesday. The key question for policymakers is how much restraint are financial market developments likely to exert outside the housing sector, he said. The increased turbulence in financial markets in recent weeks has reversed some of the gains in September and October and if it persists would increase the possibility of further tightening in financial conditions, he said. If the turmoil stems from banks worrying that interest rates will rise, the Fed should be able to address it, Kohn said.

marketwatch.com

Kohn: Can't hold economy hostage to teach speculators lesson
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