Wednesday, September 12, 2007

"Liquidity Now!"

Add Harvard economist Marty Feldstein's name to the growing list of folks calling for substantial Fed rate cuts.

In his WSJ op-ed today, the former chairman of the Council of Economic Advisers under President Reagan wrote:

"The time has come for the Federal Reserve to cut the federal funds interest rate substantially, starting on a path from the current 5.25% to 4.25% and possibly even less. Without such a policy shift, the U.S. economy faces the risk of a significant economic downturn..."

Click here to read it.