Bernanke’s Tub Overrunneth

By yvonnegrapher | Published: January 30, 2008

Kenny's Bath Fed cuts rates, again, this time by a half-point, dropping its short-term interest rate to 3% for a total of a 1.25% cut in eight days.

The reason, according to their released statement:

Financial markets remain under considerable stress, and credit has tightened further for some businesses and households. Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets.

The Committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully.

So, the Fed is more worried about a recession than inflation. The bathtub is overspilling, but at least the greedy sponges are getting fat on excess water.

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  • About

    Yvonne lives in Berkeley, California with her partner and their four-legged family. During the day, she works at a racial justice think tank, crunching numbers to eradicate white supremacy. At night and sometimes weekends, she sits at her computer, trying to make sense of the world.

    These are the fruits of her attempts. Apologies in advance if they are sometimes sour, not always sweet, unripe or not fully ready to launch. Yvonne is working on her craft of writing and playing with using all five senses.

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