monetary-policy 3

Greenspan’s defence. On why he couldn’t have raised interest rates earlier and prevented the bubble.

The Fed lowers interest rates! Certainly hadn’t expected it till the end of the month. Obviously, since this is the first time they changed rates in-between policy meetings. The market was caught short too. Anyway, the NASDAQ has shot up. IT stocks in India are following.

You can use the Fed Futures to get the market’s estimate of whether the Federal Reserve will lower interest rates. My guess, based on the numbers is that it will happen in late January 2001. Buy up stocks before then!