US Economy: A band aid on a bullet wound? Fed's rate cut won't help consumers who need it the most - by Junnifer Waters
For debt-weary consumers, the Federal Reserve's decision to shave interest rates on Tuesday is welcome news for their stock holdings but won't do much for their mortgage payments or savings accounts."It will help those who need it the least," said Richard Hastings, an analyst at Bernard Sands LLC. "But for those who need the most help, this does nothing for them. The Fed cannot help them at all." Fed Chair Ben Bernanke's decision to cut interest rates will simply give him more to worry about in the longer term, not least about rising inflation. And the chance of a US recession is getting all the more likely, an expert says.
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