The FOMC cut the FFR% by 25 bp to 2.0%. This was probably the
consensus. The statement should be read as a shift of FOMC to a
more balanced assessment of economic growth potential vs.
inflation potential. The door has hardly been closed on further rate
cuts, but the "tilt" toward a more neutral policy is unmistakable, as
is the implication of the heavy weight to be placed on"reading"
incoming economic data and monitoring the standing of a still stressed
financial system.
For more, read yesterday's entry immediately below.
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