Mises Daily
Author:
Frank Shostak
Online Publish Date:
Last Tuesday, January 22, 2008, the US central bank lowered its federal funds rate target by a hefty 0.75% to 3.5%. The panicky decision to lower the fed funds rate target was made ahead of the Fed’s meeting at the end of this month. Last Tuesday’s cut by the Fed was the largest nonscheduled interest-rate cut in more than 20 years. We suspect that