Circular Reasoning (Musical Tribute)

Fed's Poole: cut only if confident won't rue move
ST. LOUIS (Reuters) - Federal Reserve Bank of St. Louis President William Poole said on Friday that interest rates are about right and if the Fed decides to cut again, it ought be confident it will not have to quickly reverse course.

"I think that, given the information set that we have, we are approximately in the right place," Poole, a voting member of the Fed's interest rate setting committee this year, told Reuters in an interview. The next meeting is on October 30-31.

"If I thought that we were way off the right place, what evidence would I offer? Well, I think the market would be looking at the same thing that I'm looking at, and then we wouldn't be there, we'd be in a different place," he said.

Ever get the feeling we're just running in place? Yeah, me too.

The economy is strong because the stock market is strong and the stock market is strong because the economy is strong. Oil is rising because the dollar is falling and the dollar is falling because oil is rising. Win, win, win, win! I sure hope all four of those things are sustainable! Woohoo! (Otherwise we might have to "quickly reverse course.")



See Also: The Death of Real Yields

Thanks to kwark for bringing this one to my attention!