RE: Fed cuts rates 0.50 bps

From: Adam Rifkin (
Date: Wed Apr 18 2001 - 16:31:55 PDT

Peter forwarded:
> This is the fourth reduction in the federal funds rate since the
> beginning of the year, and the second time the FOMC has announced an
> inter-meeting rate cut.

Remind me, who does The Fed work for?

> The Fed funds rate is now at its lowest level since May 1994.

Not that I'm complaining, but we now have interest rates lower than
they were in March 2000, when the Nasdaq was over 5000. Isn't raising
interest rates 150 basis points and then lowering them 200 basis points,
all in the course of 13 months, just a tad excessive? How are the
stock and bond markets supposed to move in an orderly fashion -- heck,
how is business supposed to be conducted in an orderly fashion? -- when
interest rates are whipsawing so much?

I mean, why stop the discount rate at 4%? Let's lower it to 3% or 2%
since we're feeling so capricious about it.

It's almost like The Fed is panicking after making several stupid moves
in a row last year.

Yeah, remind me: who does The Fed work for?


Get over yourself. Know why? 'Cause without you I'd do anything I like. -- Eden's Crush

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