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Posted by warren mosler (208.49.176.241) on 06:28:35 11/08/07
Several Fed officials spoke today about the near-term economic outlook.
Mishkin said investors are 'continuing'to reassess risks and its 'far
too early' to know extent of market turmoil,
and Lacker noted that while he supported the rate cut there were 'good
arguments on
each side.' Warsh noted info/data "materially" altering the Fed's
expectations would be needed for another move, and Lockhart said a 'moderate
slowdown' was most likely, but the outlook has a 'high level of
uncertainty." Poole noted that
a rate cut in Dec should not be ruled out but the "rate decision will
depend on new information"
Bernake is scheduled to speak tomorrow.
I think they may be trying to take the anticipation of a cut out of
the Dec and Jan ff futures as the inflation outlook deteriorates
daily. Looking forward to see what Bernanke says.
Meanwhile, the announced losses aren't the type that alter gdp or
'current business.' Any slowdown due to the 'new' credit environment
has already happened.
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