21 Sep 2007 A Half Percent Solution?

Will the one half percent drop in the Fed Funds rate be enough to turn the ill tide that was gathering strength in the minds of consumers and business leaders? Probably not, but it was certainly a giant step in the right direction. Ben Bernanke showed that he was his own thinker, and importantly, a forward thinker. While he can say that the decision was data driven, previous Fed chairs have waited longer and required considerably more information before making their decisions. In fact, it was popular to say that the Fed drove by looking in the rearview mirror.