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Here we don't agree...
By "stable prices" I don't think
the Fed had specifically stock prices in mind. I think
this refers to costs in labour, commodities, goods and
so forth. Of course I could be wrong, but the Fed's
mission seems to be much wider than just keeping the
stock market stable. They are entrusted with keeping
the economy stable via money supply and lending rates.
I don't see that the Fed has any responsibility for the
actions of a bunch of trigger-happy market makers and
traders.
- John
-----Original Message-----
From: scheier [mailto:scheier@xxxxxxxxx]
Subject: Fed's Charter: was/Re: the Fed
> The Federal Reserve's duties fall into four general areas: .........(1)
> ........stable prices; (2)
Surprise moves like today tend to destablize, and almost seem
to be an intent by the Fed to use the positions of professioal
market participants to its advantage. Try making the case to
specialists and hedge funds, all of whom provide key market
liquidity, the case that sudden action intent on surprise is an
act of stablization.
- scheier
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