Should the Federal Reserve Aggressively Cut the Fed-Funds Target Rate?
I just happened to be listening to one of RedState’s friends, Larry Kudlow. He has a Saturday-morning talk show on WABC-radio here in New York City. He has a lot of intelligent things to say about the potential policy responses we can make to the current economic situation, most of which I agree with. He does recommend that the Federal Reserve aggressively reduce short-term interest rates. It’s taken me longer than some people to come around to this point of view (the only-marginally sane Jim Cramer has been howling about this since August.) Keep reading… Expectations are widespread that the Fed’s Open Market Committee will announce another 50-basis point cut in the Fed funds target rate at their next scheduled meeting on January 29. Larry said that Fed Chairman Bernanke should have announced a 50 basis point cut in his Congressional testimony this past week, in addition to the 50 we’ll get at the end of the month. I would have been darned surprised if Bernanke had done that. Central
