The Federal Reserve announced today it was lowering its target for the fed funds rate 75 basis points, from its previous value of 4.25% to a new value of 3.5%.
Author Archives: James_Hamilton
The case against fiscal stimulus
Everybody else seemed to hear Bernanke say he was in favor of fiscal stimulus as one approach to our economic problems. But I instead heard him articulate very intelligently the potential pitfalls of the strategy.
Will inflation fears restrain the Fed?
I think not, and here’s why.
December retail sales
Disappointing yes, but the financial press is getting a little carried away.
How low will Ben go?
Was 25, now we have 50. Do I hear 75?
Mortgage securitization
I thought it might be helpful to summarize some of the background on how we got into our present mortgage mess.
Ongoing slump in autos
The weak performance of auto sales continues, with a new twist.
Economic indicators take a turn for the worse
No cheer for the New Year from the numbers released this week.
Home sales and prices continue to fall
2007 ended like it began, only worse.
Christmas card
We wish a merry Christmas to all our readers and friends.