Fed wonders - where's the rebound

[Brad DeLong]

>[Berry is extremely well-connected, one of the Fed's prime leakees. 
>So this counts as a virtual press release for official thought.]
>
>Analysis
>Fed Wonders: Where's the Rebound?
>Policymakers Worried by Economy's Unusual Resistance to Rate Cuts
>
>By John M. Berry
>Washington Post Staff Writer
>Thursday, June 21, 2001; Page A01
>
>As U.S. economic growth remains stubbornly sluggish, some Federal 
>Reserve officials are growing increasingly concerned that unusual 
>developments may be clogging the main channels through which lower 
>interest rates normally stimulate the economy.
>
>After five half-percentage-point rate cuts this year -- the most 
>aggressive such actions by the central bank in nearly 19 years -- 
>there is no sign yet of a rebound.

Why would they have expected to see *anything* before September? Long 
and variable lags are... long and variable.

Brad DeLong