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Fed Committee Transcripts Suggest A Prescient KC President

Thomas Hoenig

(original source The Kansas City Star)

“There’s news from the Federal Reserve.

No, not that the Fed’s monetary policy committee is meeting today and Wednesday to consider what to do about our current economic malaise.

The betting line is that the Fed will cut the key short-term interest rate another quarterpoint, to 2 percent. The Fed might then pause to see if a recent flurry of cuts from 5.25 percent will prove to be an elixir for an economy that probably has slipped into recession.”

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