We all know that the Federal Reserve cut its rates. Bloomberg's Caroline Blaum wrote Fed Cuts Rates to Address Greater of Two Evils on October 2. These two paragraphs interested me:
So why cut rates? Isn't inflation the numero uno concern for central bankers, an end in itself as well as a means to achieve maximum sustainable growth?
Something clearly trumped inflation: A ``tightening of credit conditions,'' along with disruptions in financial markets, has ``the potential to intensify the housing correction and restrain economic growth,'' the Fed said.
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