Comments on: The Fed edges toward lower interest rates http://www.johnredwoodsdiary.com/2007/08/17/the-fed-edges-toward-lower-interest-rates/ Conservative Party Member of Parliament for Wokingham Wed, 19 Nov 2008 13:22:37 +0000 http://wordpress.org/?v=2.6.2 By: TomTom http://www.johnredwoodsdiary.com/2007/08/17/the-fed-edges-toward-lower-interest-rates/#comment-5019 TomTom Sun, 19 Aug 2007 18:43:38 +0000 http://www.johnredwoodsdiary.com/?p=423#comment-5019 Interest rates are low - they are as low as the Japanese and Chinese want them to be. What we do need is more control over the monetary-base which seems to be inflating at a rapid rate in Britain with PFI and LBO deals. So long as hedge-funds are making supernormal rent interest rates are simply too low, or rather monetary expansion is rampantly too high Interest rates are low - they are as low as the Japanese and Chinese want them to be.

What we do need is more control over the monetary-base which seems to be inflating at a rapid rate in Britain with PFI and LBO deals. So long as hedge-funds are making supernormal rent interest rates are simply too low, or rather monetary expansion is rampantly too high

]]> By: Tony Makara http://www.johnredwoodsdiary.com/2007/08/17/the-fed-edges-toward-lower-interest-rates/#comment-4947 Tony Makara Fri, 17 Aug 2007 20:31:14 +0000 http://www.johnredwoodsdiary.com/?p=423#comment-4947 It would not be wise to have interest rates falling below nominal GDP growth. By the same token recent attempts by the Fed and ECB to inject liquidity are not wise. Much better if market forces are allowed to react naturally, bail out should not be an option. It would not be wise to have interest rates falling below nominal GDP growth. By the same token recent attempts by the Fed and ECB to inject liquidity are not wise. Much better if market forces are allowed to react naturally, bail out should not be an option.

]]>