Fed governor Poole made comments last night that only a "calamity" would justify a rate cut. That sounds like more than just jawboning, as the Fed seems bent on not bailing out the mortgage companies, even if it means millions may lose their homes. But at the same time, the Fed injected another $17 billion into the market, which has pulled the overnight rate down near 5.0%. Isn’t this, by default, a de-facto easing in the market? If they are pressuring the fed funds rate down that much, why not just make an official cut?Overseas, Asi[...]
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[Source: The Money Blogs]
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