The Fed released these two announcements today:
There is something terribly ironic about these two announcements on
the same day: They each relate back to Federal Reserve failures: Their inadequate supervision of the banking system, and their ultra-low rates (which were also kept quite low for a full year).
Gramlich, in case you were unaware, served as a Fed Governor
from 1997 to 2005. As we noted back in June:
"I would have liked the Fed to be a leader" in
cracking down on predatory lending, Mr. Gramlich, now a scholar at the
Urban Institute, said in an interview this past week. Knowing it would
be controversial with Mr. Greenspan, whose deregulatory philosophy is
well known, Mr. Gramlich broached it to him personally rather than take
it to the full board.
Too bad there weren’t more Gramlich and less Greenspan on the Fed over that period . . .
Late Governor Gramlich honored with Lifetime Achievement Award for Responsible Finance
Federal Reserve, December 12, 2007 http://www.federalreserve.gov/newsevents/press/other/20071212a.htm
Reserve and other central banks announce measures designed to address elevated
pressures in short-term funding markets
Federal Reserve, December 12, 2007 http://www.federalreserve.gov/newsevents/press/monetary/20071212a.htm
Shorter Fed Statement:
Cut 1/4 point federal funds rate
Cut 1/4 point discount rate
Growth slowing, inflation risks remain
Mr. Market no-likey the no-happy talk . . . Dow off
175 275 as I type this
Complete Fed statement after the jump . . .