Re: Fed Rate Cut Discussion Thread
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Bernanke/Fed Chairs has a 6-yr term which will last past the next 2 elections, he's not loyal to anyone over and above the economy as a whole.
Clinton wasn't scared of AG, he was scared of the bond market, which took rates from 5.75% to 8.3% in 9 months because they didn't like his initial tax&spend policies and attempted restructuring of the US economy.
It wasn't AG who took long rates up 2.5% that fast...it was the market.
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Good 2nd and 3rd points, although I disagree with the first. Call it what you will, loyalty or synchronized philosophies, I doubt that he will be doing anything that the administration thinks is incorrect for short-term benefit.
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