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In Need Of A Shock.(ISSUES & INSIGHTS)(EDITORIALS)
The Fed: For those who needed proof, it's here: The economy has been in far worse shape than anyone thought. Shouldn't the Fed be cutting interest rates?
It seems we have a little problem. The government "missed" last year's recession. Only Wednesday, after the Bureau of Economic Analysis revised its data for last year, did we find out the economy actually went into recession earlier -- and stayed longer -- than first thought.
Instead of shrinking only in 2001's third quarter, as first reported, the economy actually contracted for the first three quarters: by -0.6%, -1.6% and 0.3%, in that order.
So forget all those columns you read this year suggesting the recession didn't even happen. And those that said the Fed's slashing of interest rates 11 times in 2001 wasn't needed. Also, forget claims by Democrats that President Bush's tax cuts, which kicked in during the third quarter, weren't really needed and created the deficit.
As it turns out, without the $40 billion the tax cuts put in the pockets of 85 million Americans last year, the economy might still be shrinking. And the deficit would be far worse.
But it goes much beyond that. The whole case against Bush's economic plan was built on the idea that he and congressional Republicans "spent the budget surplus" and sent the economy into the tank through unwise tax cuts.
It's now clear how utterly false those accusations were.
- Fed Chief Sees Pause, Not A New Recession, Hedges Over Tax Cuts; Questions If...
- Magazine article from: Investor's Business Daily November 14, 2002 700+ words
...interest rates at historic lows. Fed Gov. Roger Ferguson said Monday the Fed could buy long-term securities...on the committee pressed the Fed chairman to say whether he's also open to making Bush's 2001 tax cuts permanent. Greenspan told a...
- Fed stands pat as U.S. renews focus on tax cuts: Rates held at 1.25%: Fiscal...
- News wire article from: The America's Intelligence Wire December 11, 2002 700+ words
...Stanley in New York. "The Fed's next meeting is January...aggressively lobbying for tax cuts to further stimulate the...committee, said yesterday. The Fed meeting came as Mr. Bush...preparation for another round of tax cuts designed not only to pump...
- Candidate Dean Critical of Greenspan, Fed`s Stance On Tax Cuts, CNNfn.
- News wire article from: The America's Intelligence Wire January 26, 2004 700+ words
...support the outrageous tax cuts that George Bush put through...expect this week from Fed policy makers, Joshua...are going to keep the Fed on hold. HAYS: Some...policies, believe in tax cuts to stimulate growth...They have criticized the Fed loud and long. They think...
- Fed Chief's Comments Negative for Tax Cuts.(United States Federal Reserve Board...
- Newspaper article from: Kiplinger Business Forecasts February 11, 2003 700+ words
...or interest rate cuts by the Fed. Greenspan's remarks will...Congress on his fiscal package. The Fed chief is often accused of making...package, which consists mainly of tax cuts. However, Republicans will...finding offsets right now. The Fed boss also didn't help Bush...
- Fed backs tax cuts for business growth.
- Newspaper article from: St. Louis Post-Dispatch (St. Louis, Missouri) (via Knight-Ridder/Tribune Business News) October 21, 2005 700+ words
...d be better off enacting broad tax cuts than subsidizing specific companies...such as biotech, the St. Louis Fed contends in a report released...discussed the report this week at the Fed in St. Louis. "What this Fed report says is 'What if you...
- Greenspan Warns Of Runaway Deficits, But Rejects Efforts To Repeal Tax Cuts;...
- Magazine article from: Investor's Business Daily September 13, 2002 700+ words
...economy will suffer. But the Fed chairman said little else about...delaying the remaining parts of the tax cuts, which take effect incrementally...plans for interest rates. The Fed's Open Market Committee meets...gave few clues as to what the Fed might do on interest rates...
- Some Expect Jobless Recovery, But Early Signs Are Encouraging First-time...
- Magazine article from: Investor's Business Daily June 7, 2002 700+ words
...lenders. The result was what Fed Chairman Alan Greenspan later...slowing the economy. Add to that a fed funds rate that pretty much equaled...from," Wesbury said. "The Fed was easing, but the mechanism...downturn has pluses and minuses -- tax cuts, a federal spending spree...
- 9-11, War, Downturn: Who'll Ever Forget? Year Lives In Infamy Don't overlook...
- Magazine article from: Investor's Business Daily January 2, 2002 700+ words
...million Americans lost jobs. 5. Fed cuts rates 11 times. The benchmark fed funds rate started the year at...bill. So 475 basis points in Fed rate cuts mean lots of stimulus...Palestinians and 234 Israelis dead. 7. Tax cuts pass Congress. Bush asked for...
- United States: ready, steady ... large amounts of money are now being fed into...
- Magazine article from: What Investment Root, Keiron January 1, 2002 700+ words
...conservatively postured." A key influence has been the Fed's willingness to cut interest rates. "Despite...However, large amounts of money are now being fed into the economy, through tax cuts, government spending programmes, interest rate...
- Economic Analysis: Jobs, Profits, Fed Deficit, Tax Cuts -- Crucial Variables,...
- News wire article from: The America's Intelligence Wire February 19, 2004 700+ words
...he made was, if you want to have these tax cuts be permanent that the president wants...down the road, you cannot make these tax cuts permanent. Find a way of cutting spending...cannot do that, then forget about making tax cuts permanent. A very strong statement...