1. Fed in a really surprise move lowered both fed funds rate and discount rate by 75 bps (difference between the two is here). I juts don’t know what is really going on in US. Fed and policymakers are surely seeing something which we are not and it must be really scary for FOMC to take such a step. This time there was one dissent- Bill Poole and one absentee- Mishkin.
I can understand the dissent as Poole “did not believe that current conditions justified policy action before the regularly scheduled meeting next week. ” However, I can’t understand this absent and no voting business .
2. WSJ Blog on economists’ reactions.
3. Economist Blog summarises what few economists have to say
I believe the FOMC cast its vote today with those who declare that a recession has already begun.
5. TTR believes brain-drain isn’t as big as it is made out to be.
6. Parag Parikh says it is greed that did the damage to the investors.