Calamity!
I agree with privatebanker.
From my vantage point the Fed injecting money, which I believe they haven’t done since 9/11, and now dropping the rate after hinting they were still fighting inflation, shows their nerves are rattled.
I think they were worried about runs on banks (and bank-like institutions).
Also, see what Poole said a while ago (aka 2 days ago): “I don’t see any impact as yet on the real economy or on the inflation rate,” he said in an interview in the bank’s boardroom. “Obviously, there could be an impact, but we have to rely on some real evidence.”
Barring a “calamity,” there is no need to consider an emergency rate cut, Poole said. His comments were the first by a Fed official since the U.S. central bank joined counterparts in Europe and Asia to inject emergency funds after a surge in money- market rates. The Fed has added $71 billion of reserves in the past five trading days.
This Fed action feels more like a rescue helicopter that, rather than rescue you, drops a few months worth of food and some clothes for winter…
