Bernanke Battles `Big-Time’ Economic Erosion With New Rate Cuts
By Daniel at 27 October, 2008, 8:01 pm
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Rich Miller
Bloomberg
Monday, Oct 27, 2008
Less than three weeks after the Federal Reserve’s emergency interest-rate reduction was, in the words of its vice chairman, “overwhelmed” by the collapse of financial markets, Ben S. Bernanke is about to try again.
The outlook has worsened since the Fed last acted on Oct. 8, and analysts now say the economy may shrink more than 2 percent in the final quarter of 2008, its steepest decline in at least 18 years. “We’re heading south big-time,” says Lyle Gramley, a former Fed governor who is now senior economic adviser at Stanford Group Co. in Washington.
As a result, Fed Chairman Bernanke and his colleagues may eventually have to drive the benchmark overnight rate close to zero to resuscitate the economy. The next installment comes Oct. 29 when, says Gramley, “the Fed is going to cut rates a half percentage point.”
(Article continues:
http://www.infowars.net/articles/october2008/271008Bernanke.htm
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