Federal Reserve Department of Irony

The Fed released these two announcements today:

Federal
Reserve and other central banks announce measures designed to address elevated
pressures in short-term funding markets

and

Late
Governor Gramlich honored with Lifetime Achievement Award for Responsible
Finance

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.
-WSJ

Too bad there weren’t more Gramlich and less Greenspan on the Fed over that period . . .

Sources:
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

Federal
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

Category: Federal Reserve, Fixed Income/Interest Rates, Psychology, Real Estate, Taxes and Policy

Media Appearance: CNBC’s Morning Call (12/12/07)

Category: Media

Just Kidding!

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Snubbed

Category: Economy, Federal Reserve, Financial Press, Markets, Psychology, Technical Analysis

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Category: Federal Reserve

Uh-Oh . . .

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 . . .

>

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