The Week We’ve Been Waiting For: The only event more anxiously awaited than the outcome of this year’s presidential election may be the Fed’s long-awaited call on interest rate reductions. The Fed aggressively dropped its Fed Funds rate 50 basis points. This action reflects both confidence about taming inflation and concern about assuring that economy does not tip into recession (there’s still a thing called the business cycle and current expansion in its 15th year is getting rather “long in the tooth.”)
- Economist Brian Wesbury offers his personal take on where inflation comes from and analyses this week interest rate announcement. These two one page articles are worth your time: It’s Money, Not Spending, that Causes Inflation ) and “And We’re Off!
- ITR Economics’ Brian Beaulieu offers a broad analysis of the interest rate reduction’s impact on housing, retail, industrial and the stock market in his latest Fed Watch .
