New St. Louis Fed president Bullard remains focused on inflation and sees growth slowing but probably not contracting. He says rate cuts amid a financial panic are not the answer.
I’d partially agree with the latter point. Rate cuts alone are not the answer but they are the loudest signal that the Fed can send to the markets and Main Street. TSLF, TAF and all the other alphabet soup invented by the Fed in recent months are lost on most. Sometimes a blunt instrument works better than a precision instrument, as any shade-tree mechanic will tell you. That’s why ever tool kit comes with a hammer!
