Fed Policies

The Fed is expected to cut short term interest rates in half, to 0.5 percent, today. The danger is the Fed’s credibility could be hurt if they don’t clearly communicate a new strategy of manipulating the supply of money.

At some point the strategy needs to change if the preventive measures & policies aimed at stimulating the economy aren't working.

It will be interesting to see the actions the Fed takes & their communications regarding their future policies.