Wednesday, September 21, 2011

The Fed's Next Move

There are really not many tricks left in the Fed's bag. Interest rates cannot go much lower. This environment is similar to Japan's situation beginning in the early/mid 90's more or less until today. Does this mean we have another 15+ years of this? Certainly the U.S. is not Japan but it does seem to me that interest rate manipulations have largely proven ineffective. There is no substitute for a broader macroeconomic strategy from the Congress and the President to spur economic growth and to restore a broader confidence.


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