My, my, Texans are getting feisty these days. Fisher is an inflation hawk and wanted an increase in the fed funds rate. He was outvoted 9-1. (Thanks to the FB’er who sent the item.)
1 comment
One problem if the Fed doesn’t get tougher on inflation, adding a few more hawks to the pack, is that inflation may weight the economy down, at a time when loosening is supposed to ease the pain. Dow Chemicals announced two price hikes within the last couple of months, explaining the economics of their move to seemingly sympathetic though not too happy customers. Consumers will get hit again, beyond the initial gas price shocks, and incremental food price rises. And if prices start rising incrementally here and there, and then oil prices abate, we are stuck with higher prices…I think a few more claws, whether they stayed rates or not, would have sent a better signal to markets, businesses, and consumers. It might have even given the dollar more traction, which seems to be a cause for some economic woes as well.
@ 3:47 pm on June 25, 2008
FrontBurner® launched in March 2003, the first blog in Dallas run by a media organization. This is where the editors of D Magazine come to waste a tremendous amount of time.
1 comment
One problem if the Fed doesn’t get tougher on inflation, adding a few more hawks to the pack, is that inflation may weight the economy down, at a time when loosening is supposed to ease the pain. Dow Chemicals announced two price hikes within the last couple of months, explaining the economics of their move to seemingly sympathetic though not too happy customers. Consumers will get hit again, beyond the initial gas price shocks, and incremental food price rises. And if prices start rising incrementally here and there, and then oil prices abate, we are stuck with higher prices…I think a few more claws, whether they stayed rates or not, would have sent a better signal to markets, businesses, and consumers. It might have even given the dollar more traction, which seems to be a cause for some economic woes as well.