Fed rate cut

[TomVols]

Do you think this weeks 75bp cut by the Fed Reserve will help stimulate the economy? What do you think of this decision?

 

[Andy T.]

I read an article in World magazine how this dramatic drop in rates is almost unprecedented. Usually, the Fed will only drop rates this much in times of crisis - e.g., shortly after 9/11. The article warned that such a drastic drop could lead to out of control inflation. Interesting. I'm not an economist, but it appears that 90% of economic forecasting is a crap shoot anyways. But that's just the cynic in me.