Fed Decision To Hold Rates Steady Shows No Courage
Author: Rob K. Blake | Date: August 5, 2008 | Filed In: Mortgage News
The Fed decision today to hold rates at 2 percent was expected. The Fed decision and the statement outlining the reasons show Bernanke’s lack of courage and leadership in my book.
Fed Decision Lacks Vision
The statement of the Fed said inflation worries in the future were “highly uncertain”.
Uncertain my eye…there is nothing more certain than future inflation than death and taxes.
The FOMC acknowledged that high commodity and oil prices were applying inflationary pressures but discounted the need for a rate increase at this time.
One would think that the Fed could “plan ahead” and act in the present with the future in mind knowing any Fed decision takes 18-12 months to impact the economy…but noooOO.
The only one with any courage and foresight casting the sole dissenting vote was Dallas Fed President, Mr. Richard Fisher. He wanted a quarter percentage raise.
Way to go Mr. Fisher…we are with you! Keep fighting the good fight.
Good Luck!
Author: Rob K. Blake
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