Quote from aeliodon:
Well its pretty clear that Ben is going to give the first signal that he is going to try to inflate his way out any potential economic weakness no matter how minor. In doing so, by lowering rates - he is basically saying to the entire world that he is willing to devalue the hard earned savings of responsible individuals and businesses to bail out the irresponsible and immoral individuals and businesses.
Guess who gets hurt by inflation the most - the poor and middle class who don't hold inflation hedges like real estate, stocks, bling, and foreign currency like the ultrarich do.
I retract this thread if Ben takes the high moral ground by not cutting rates - but I think he's lost his opportunity to talk down the fed fund futures.
