Greenspan Won't Rule Out Aggressive Moves

[Khephra]

WASHINGTON -- Federal Reserve Chairman Alan Greenspan suggested Tuesday that Fed policy-makers can boost now super-low interest rates gradually, but he didn't rule out more aggressive action to keep inflation at bay.

Although Greenspan repeated the Federal Open Market Committee's view that any upcoming rate increases would likely be at a very methodical pace, he said that assessment was made on Fed policy-makers' best judgment of how economic and financial forces will evolve in the months ahead.

"Should that judgment prove misplaced, however, the FOMC is prepared to do what is required to fulfill our obligations to achieve the maintenance of price stability so as to ensure maximum sustainable economic growth," Greenspan said in prepared remarks to an international monetary conference in London. He spoke via satellite.

more...........

http://www.newsday.com/business/nationworld/wire/sns-ap-greenspan,0,2557627.story?coll=sns-ap-business-headlines

[Bandit]

1. Any bets that when Kerry takes office Greenspan will raise rates instantly

He will do everything in his power to try and sabotage a Democratic Administration. He has kept rates at the lowest in half a century for a dismal Republican Administration but as soon as a Democrat takes office the rates will sky rocket and then the blame will go to Kerry and not Greenspan. I hope Kerry fires his ass immediately.

[Wright Patman]

2. The shadowy history

of the relationships between American presidents and the private central bankers who run their economies tends to indicate that any president who would make such a rash move would soon be met with measures very hazardous to his health.

[gratuitous]

3. Got that right

When Stupidhead took office, Greenspan couldn't get the Fed to lower interest rates quickly enough. Unfortunately, a series of stupid maneuvers and stupider bills forced the Fed to drop one of its rates to 1%, below which it couldn't go. As the recession deepened in 2002 and 2003, there was nothing they could do to stimulate investment, because interest rates were already at rock bottom. So, Lil George had to start a war to head off a full-blown depression. He couldn't, you know, raise taxes on the overrich.

It's so bad that when I got a notice for a three-year CD at the abysmal rate of 3.46%, I jumped on it because there's just nothing else out there. Remember the 1990s, when money could be invested safely for an annual return of anywhere from 7% to 12%?

[TahitiNut]

6. At the same time, the "bottom 50%" are saddled with ...

... consumer credit interest rates of up to 24% and more, while only getting 0.25% or less on their individual savings accounts. Even the Bible calls this "usury." Isn't it funny how the neocons only read the parts of the Bible that serve their greed and predation? :puke:

[displacedtexan]

4. Greenspan raised rates several times in 2000 (before November).

Greenspan is a snake!

[nodictators]

7. In fact, Greenspan had been raising rates for more than a year

before the election. He knows full well that raising rates hurts the incumbent party, the Dems in 2000.

Then a few weeks after Bush's appointment, Greenspan abruptly reversed course and began drastically slashing interest rates.

[KayLaw]

8. Either way

I think rates will go up after the election no matter who wins.

[bemildred]

9. Yeah, the game is just to keep the lid on until November.

Gotta re-elect those incumbents.

[gulfcoastliberal]

10. Unfortunately, that's not possible

Greenspan can't be fired. Kerry will have to bring in someone when Greenspin retires or is up for another confirmation. Fuck you, Alan Greenspin, you miserable repug reptile!

[tom_paine]

13. Who would be stupid enough to bet the other side?

As certain as Stalin hiring a guy to drive an icepick into Trotsky's head.

EXACTLY as certain.

[Yavin4]

5. Greenspan's Politicization Of Monetary Policy Will Bring On A Crash

in 2006. Ever since 1999, Greenspan has used monetary policy to affect presidential politics. His rate hikes from 1999 to 2000 caused the economy to go into a recession in 2001 and 2002. His aggressive rate cuts has brought about inflation once again.

[salin]

11. NYT: Greenspan Says Inflation May Force Fed to Raise Rates Sharply

By KENNETH N. GILPIN

Published: June 8, 2004

he Federal Reserve Board chairman, Alan Greenspan, said today that the central bank stood ready to tighten monetary policy more rapidly than the financial markets now expect, should inflationary pressures intensify.

Referring to the Fed's policy-making Open Market Committee, Mr. Greenspan said, "The committee is of the view, as you know, that monetary policy accommodation can be removed at a pace that is likely to be measured."

That conclusion is based on our current judgment of how economic and financial forces will evolve in the months and quarters ahead," he said in remarks delivered by satellite to an overseas conference on money policy. "Should that judgment prove misplaced, however, the F.O.M.C. is prepared to do what is required to fulfill our obligations to achieve the maintenance of price stability so as to ensure maximum sustainable economic growth."

Some analysts said that given the difficult task of forecasting future movements in prices, Mr. Greenspan was merely speaking as a responsible policy maker willing to alter course if conditions warranted. But others noted that his remarks seemed somewhat at variance with sentiments recently expressed by other Fed officials.

more: http://www.nytimes.com/2004/06/08/business/08CND-FED.html

[sadiesworld]

12. Apparently, Greenspan has increased his WH visits from

one per month during the Clinton administration to one per week during the * misadministration.

Sorry I don't have a link, heard it on NPR last(?) week.