tag:blogger.com,1999:blog-30643134.post136049641734810025..comments2023-12-26T01:10:26.319-05:00Comments on Accrued Interest: Highlights from PooleAccrued Interesthttp://www.blogger.com/profile/05096191765979971184noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-30643134.post-77541234795978318662007-02-13T14:02:00.000-05:002007-02-13T14:02:00.000-05:00I still think the Fed will cut once or twice in 20...I still think the Fed will cut once or twice in 2007. The move will be viewed as a tweak and not the start of cutting cycle.<BR/><BR/>I don't think the Fed will cut rates because the curve is inverted. The Fed was not forced to raise rates in 2001-2002 when the curve was extremely steep.Accrued Interesthttps://www.blogger.com/profile/05096191765979971184noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-31183658518655552902007-02-13T07:12:00.000-05:002007-02-13T07:12:00.000-05:00Tom, Poole's statement is more weighty than you th...Tom, Poole's statement is more weighty than you think: <BR/>"...monetary policy can affect only prices and not quantities in the long run."<BR/><BR/>As Keynes said, "In the long run, we are all dead." Monetary policy can provide a temporary short-term stimulus to the economy. Whether it can be done without inflationary consequences is another story. <BR/><BR/>However, I think you give the Fed too much credit. Economic weakness spreading from housing to the consumer may invert the yield curve further, since the Fed does not control long rates. Eventually the Fed will have to "catch up" with the market and cut rates.Anonymousnoreply@blogger.com