THE BE YOUR OWN ECONOMIST ® BLOG
Today’s lead New York Times article (http://www.nytimes.com/2008/01/17/business/17cnd-fed.html?_r=1&hp&oref=slogin) carried the headline “Fed Chief Backs Quick Action to Aid Economy,” and the first sentence said , “Ben S. Bernanke, the Federal Reserve chairman, told Congress on Thursday that he favored quick passage of an economic stimulus package in combination with the Fed’s own measures to support economic growth.”
That’s a clear sign of where the Fed thinks the economy is heading: South. Concerns regarding inflation, while they may be present, no longer drive policy. The Fed wants a full-court press to deal with the recession that’s on our doorstep.
© 2008 Michael B. Lehmann
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