Friday, November 2, 2007

Fed Cuts The Rates Despite Strong Growth Numbers

US fed again cut the interest rate by 0.25% despite a strong economy, this indicates that fed is also favouring market forces to fuel currency in the financial system, knowing that this will further boost already extremely inflated assets like stocks and commodities and hence enhance already shooting up inflation in the economy. This stance will only make problems more worse since more and more cheap money will now chase riskier assets and subsequently volatility.