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Weekly Wrap: The Fed's new role

A Wall Street sign in New York City's financial district.

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Stephen Stohs's picture
Stephen Stohs - Aug 14, 2009

Keep up the cutsy analysis, lest your listeners fall asleep with boring discussions of endlessly low interest rates.

Jim Weber's picture
Jim Weber - Aug 14, 2009

Your commentators are ridiculously and inappropriately cute-sy about their analysis. The Fed didn't raise interest rates this week...this is true...but it was NOT (as they went to silly pains to assert) because it's distracted by politics or Bernanke is worried about how he's playing in the media, but because THERE IS NO INFLATION. People who are expecting inflation to soar because the government is sending out stimulus money out there seem to forget that few private player have the will or capacity to invest right now. So, the government is pretty much the only show in town - not sufficient in a mixed deflationary (see housing prices) environment to goose the valuations. So, cool it with the MTV analysis, okay? Just report and credit the data with some relevance.