Fed Not Rushing to Rescue Investors with Rate Cut:...

Fed Not Rushing to Rescue Investors with Rate Cut: WSJ
Topics:Interest Rates | Inflation | Ben Bernanke | Federal Reserve | Federal Budget (U.S.) | Economy (Global) | Economy (U.S.)By Reuters | 30 Aug 2007 | 04:21 AM ET Font size: The U.S. Federal Reserve is not rushing to cut benchmark interest rates because it wants to break investors of the view that the central bank is there to bail them out, an article in the Wall Street Journal said on Thursday.

Fed watcher Greg Ip, without quoting specific sources, said Fed Chairman Ben Bernanke was keen to draw a distinction between keeping financial markets ticking over and ensuring a sound economy.

The article said there was a perception, while Alan Greenspan was chairman of the Fed, that the Fed would react to problems of financial stability by cutting rates but that Bernanke was keen to break the automatic assumption that market convulsions lead to interest rate cuts.

The Fed cut the rate it charges banks for direct loans earlier this month amid financial market turbulence but has made no change to the benchmark Fed funds rate of 5.25%.

"said on Thursday"

Prophet, you said " nice if it was true", dunno what you are referring to - its too late at night for me to catch the nuance. But, if all of the above was a cut and paste from a web based article, then I'm not sure it would be authentic. American journo's don't like know how to write real proper english you know they write like "said Thursday" instead of " said on Thursday". So if it is the authenticity of this article that you doubt and if it is supposed to be fron the US then I would say you are wright