Will pushing record low interest rates even lower really make a difference?
Will pushing record low interest rates even lower really make a difference in the pace of growth and hiring in the U.S.? Will it actually ease the anxiety that's being exported from Europe and polluting market sentiment?
As much as I say no, the markets, the masses, and even some FOMC members seem to think otherwise and have all but discounted some form of response from the Fed when its two-day meeting wraps up later today. But assuming it does happen, you have to factor in two things: the fact that there would be some lag time before any new policy of easing (or twisting, or whatever you want to call it) could be implemented and carried out, and the fact that it would take even longer before the knock-on effects could find their way into the broader economy.
The Fed right or wrong will take action to mitigate risks that seem to be popping up all over but it’s just a political band aid that hasn’t before and can’t now solve our real and deep economic issues.