Why the Fed's Cut Won't Spark Inflation

摘要

Did the Federal Reserve do a good thing or a bad thing? Wall Street and bourses around the world seem to be of two minds since the Fed boldly slashed its target interest rate by a half-point on Sept. 18. The response in several previously frozen markets for short-term financing was extremely positive, and stock investorsrnwere jubilant. However, the reaction in longer-term fixed income and commodities markets, especially for gold, has been more circumspect. Investors there have new worries that the Fed just kick-started a round of inflation.