One of the traditionally more hawkish members of the FOMC, Dallas Fed president Richard Fisher, is on the tape saying that credit conditiona are very tight and that is blunting the impact of Fed rate cuts. He sees no economic growth through 2009.
One need look no further than this afternoon’s Senior Loan Officer survey from the Fed to get a sense how tight banks are being at the moment.
Stocks have turned mildly negative in quiet trade, down 35 points while EUR/JPY consolidates losses at 124.90.
