Economy - Tuesday (Investor's Business Daily)

[riky]

Economy - Tuesday
    (Investor's Business Daily)

 

Investor's Business Daily - Fed Vice Chairman Donald Kohn said interest rates are "appropriately calibrated" to help a sluggish economy without triggering inflation. The Fed has cut rates by 325 basis points to 2% since Sept. But policymakers need to be prepared to adjust rates in what he called a "highly uncertain outlook." If inflation moves higher, the Fed will face a "more serious situation." Kohn forecast stronger growth for the 2nd half of '08 and into '09, but warned that housing problems and tight credit remain drags on the economy.


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