I think the Fed will act aggressively. The timing remains to be seen, but both Main Street and Wall Street are pleading for further rate cuts, so I think Greenspan will respond. The sooner and deeper a rate cut, the sooner consumer and business confidence should improve.
The trend is now clear. Inflationary pressures are building and prices are rising; only the pace remains at issue. September's figures may prove to be just a spike, but we can't dismiss the growing risks of a sudden acceleration in inflation.
The labor market remains the Achilles heel of a robust economic recovery. With the Fed talking about lowering interest rates to zero to get the economy growing strongly again, getting people back to work and increasing demand may be the Fed's primary worry.
The labor market remains the Achilles heel of a robust economic recovery, ... With the Fed talking about lowering interest rates to zero to get the economy growing strongly again, getting people back to work and increasing demand may be the Fed's primary worry.