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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?


To: Freedom Fighter who wrote (88366)1/12/2001 8:09:39 AM
From: accountclosed  Read Replies (1) | Respond to of 132070
 
wayne, i'm interested in this also.

i just posted a response over here

Message 15171685

and yet i was responding to a post implying that the fed was printing money like crazy

Message 15171625

it seems to me axiomatic that the fed would have to create more reserves to effect the desired rate reduction they want. they can't just shout out to the marketplace what they want rates to be and not take action to make it happen.



To: Freedom Fighter who wrote (88366)1/12/2001 11:36:44 AM
From: Knighty Tin  Respond to of 132070
 
Wayne, I have to confess ignorance here, as I have not been watching the Fed balance sheet movements. It seems that they should be buying bonds to put more credit into the banks to support the rate cut.