The next president needs to sack Bernanke after his wobbly kneed move yesterday. How could anyone see it as anything other than complete panic? Business leaders are chiming in with plenty of valid criticism. Even at rates of 3.5% (with more expected next week) cash is available for well under the rate of inflation which is at 4.1%. How is this not going to promote even more inflation? Inflation may not be an issue for the Wall Street wealthy but is sure is for everyone else.
“We have a market-friendly Fed possibly injecting a lot of liquidity in the system which will set us up for another bubble economy,” said Stephen Roach, head of Asia for U.S. investment bank Morgan Stanley (MS.N).
“I’m sort of worried that all they did yesterday was to hit the snooze button. (This is) excessive monetary accommodation that just takes us from bubble to bubble to bubble.”
Lawrence Summers, a former U.S. treasury chief, was critical too: “It’s hard to give a high grade (to central banks) for what’s happened in the last six months.”
