[lbo-talk] Fed: c'est tout, for now

Doug Henwood dhenwood at panix.com
Wed Apr 30 11:55:42 PDT 2008


On Apr 30, 2008, at 2:46 PM, Steven L. Robinson wrote:


> So, is this or isn't it a recession?

Probably is, and it began around the end of last year. Also could be a longer-term problem, several years of a sucky economy. But I'm guessing the Fed thinks it's done enough for now, and is worried about inflation. Note the 2 dissenting votes. Fisher & Plosser are hardcore inflation hawks, but that's a strong minority within the Fed and the financial markets. They think the economy will recover by year-end, so the proximate danger is now the risk of rising inflation expectations.

Doug



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