Wednesday 25 Nov 2020 | 02:02 | SYDNEY
Wednesday 25 Nov 2020 | 02:02 | SYDNEY

More on the Fed rate cut


Mark Thirlwell

24 January 2008 12:39

The debate over whether the Fed’s emergency 75bp rate cut was a sign of panic or a sensible policy response continues. Stephen Cecchetti makes the case that, contrary to the prevailing story, the Fed was not spooked by falling stock markets. Instead, he suggests that the move may have reflected some combination of the data flow and a desire on the part of Chairman Bernanke and his colleagues to signal their commitment to strong and speedy action.  According to this Financial Times report, many of the various financiers, businessmen and policymakers gathered at the annual meeting of the World Economic Forum were not impressed by the move. Staying with Davos, Slate’s Daniel Gross has this set of observations about how the recent financial market turmoil has been playing at the gathering in Switzerland.