>nonetheless, the Fed cut rates in a seemingly panicked way. Is it possible that
>they're freaking out about international events? or rising saving by consumers? or
>what?
-- Jim Devine
There is a clear tone of consternation in the WSJ's front page account of the decision
to cut. AG has been fairly pleased with the slowdown, as real economy numbers have
held up better than expected. His only rationale for cutting on March 20 was to
appease the markets, though he had to do so without looking anxious. The article all
but says that the dog is being wagged by the tail at this point--the FOMC now acts on
the hopes of such ephemera as "the announcement effect." The journal isn't sure they
like this or not, because it concedes that the reality of the bubble.
Christian
