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To: sandeep who wrote (38366)12/18/2000 7:25:28 PM
From: Square_Dealings  Read Replies (2) | Respond to of 42787
 
It's definitely time to start lowering interest rates, only I dont think it will happen tomorrow. A move to neutral bias by the Fed will send a clear signal that a cut is coming soon. So it will allow some recovery to start taking place where it is appropriate.

A surprise cut right at the holidays runs the risk of a spike in consumer spending.

A controlled release of tax cuts will also help the situation. The US worker deserves some tax cuts which is a better way to increase spending than across the board rate cuts imo.

There are still inflationary pressures in the energy sector and the labor market is still extremely tight.

M.