Fed urged to cut rates or face recession

[babsbunny]

http://news.independent.co.uk/business/news/article2921895.ece

By Stephen Foley in New York
Published: 03 September 2007
The Federal Reserve heard a plea for a full percentage point cut in US interest rates in order to forestall a recession, as central bankers debated the fall-out from the housing market slowdown.

The US central bank's annual symposium in the quiet mountain town of Jackson Hole, Wyoming, has this year been dominated by the questions of if and how monetary policy should respond to changes in house prices. The event has been scrutinised as never before by investors and economists for clues as to how the Fed may act at its next rate-setting meeting on18 September.

[soothsayer]

1. lol, we don't even know how much currency is in circulation; inflation is

easily at 20% to 30% now. I think we've BEEN in a recession for awhile. Why are they pretending otherwise?

[aquart]

2. Because it's stagflation.

These babies have no way out of hell.

[NYC]

3. I'm wondering how we can have growth when we don't

manufacture anything. Underemployment doesn't register as unemployment.



Stagflation: A condition of slow economic growth and relatively high unemployment - a time of stagnation - accompanied by a rise in prices, or inflation.

... Stagflation occurs when the economy isn't growing but prices are, which is not a good situation for a country to be in. This happened to a great extent during the 1970s, when world oil prices rose dramatically, fueling sharp inflation in developed countries. For these countries, including the U.S., stagnation increased the inflationary effects.


http://www.investopedia.com/terms/s/stagflation.asp

[aquart]

4. Their economic model does not include jobs.

Some would consider that a flaw.