monetarism & paranoia

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

So the Jobs Report Is Dismal. The Fed Has No Place to Go but Up. By JONATHAN
FUERBRINGER
New York Times
August 8, 2004
That will Fed policy makers do this week in the face of surprisingly weak job growth
in the last two months? Raise interest rates, of course.
Despite the awkward timing of the Fed meeting, so soon after Friday's report that
only 32,000 new jobs were created in July, the Fed has little maneuvering room. "The
Fed is going to raise rates," said Richard Yamarone, director of economic research at
Argus Research.  He said that one reason Alan Greenspan, the chairman of the Federal
Reserve, would go ahead was that "he has got to raise rates so he can cut them again
if there is a terrorist attack."



--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu