How Setting The Fed Funds Rate Is Like Shooting Free Throws With Your Eyes Closed

The Fed may have lowered the Fed Funds Rate by 0.500%, but we won't know until mid-2008 if the move was good one or not. It's because the FOMC voting members walk a fine line between accelerating the economy, and grinding it to a halt. Predicting the future is actually a subtle part of the job description at the Fed because changes to the Federal Funds Rate create a complex chain reaction in the economy, beginning with businesses and their...

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[Source: The Mortgage Reports Blog]