THE FEDHalf-point rate cut may be enough: Fed's KohnBy Greg...

THE FED
Half-point rate cut may be enough: Fed's Kohn

By Greg Robb, MarketWatch
Last Update: 12:29 PM ET Oct 5, 2007Print E-mail Subscribe to RSS Disable Live Quotes
WASHINGTON (MarketWatch) -- The Federal Reserve's Sept. 18 interest-rate cut of half a percentage point may be enough to keep the U.S. economy from sinking as a result of the financial markets' recent turmoil, Donald Kohn, vice chairman of the central bank, said Friday.
Many economic factors remain uncertain, Kohn said, including how quickly markets will recover, the extent of credit tightening for consumers and businesses, and how household spending will respond to recent financial developments.
"But pending further evidence, a 50-basis-point easing was not an unreasonable first approximation of what might be required to keep the economy on a sustainable growth path," Kohn said in a speech to the Greater Philadelphia Chamber of Commerce

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