Poole didn't lower his discount rates

S

Scribe

The St. Louis Discount Rate is still at 6.25% (Primary) / 6.75% (Secondary).

Funny how it was pitched as a "unanimous" vote. I guess St. Louis is giving wall street the finger.

Current Discount Rates District Primary Credit Rate Secondary Credit Rate Effective Date
Boston 5.75% 6.25% 08-17-2007
New York 5.75% 6.25% 08-17-2007
Philadelphia 5.75% 6.25% 08-17-2007
Cleveland 5.75% 6.25% 08-17-2007
Richmond 5.75% 6.25% 08-17-2007
Atlanta 5.75% 6.25% 08-17-2007
Chicago 5.75% 6.25% 08-17-2007
St. Louis 6.25% 6.75% 06-30-2006
Minneapolis 5.75% 6.25% 08-17-2007
Kansas City 5.75% 6.25% 08-17-2007
Dallas 5.75% 6.25% 08-17-2007
San Francisco 5.75% 6.25% 08-17-2007
 
It's Friday. It probably means that when the Fed called St Louis to confirm the rate somebody wasn't at their desk and the Blackberry was out of range on the 12th hole.
 
The official line is that he didn't want to "tip off" the media that the fed was meeting (via teleconference) so he stuck to his scheduled dinner plans with some college students and a dean. Uh huh.

Based on his recent comments I suspect he just didn't want to be involved in the "Cramer Cut". Or perhaps they were worried they wouldn't get their "unanimous" vote and told him the meeting was later that night.

http://www.bloomberg.com/apps/news?pid=20601109&sid=a20JTpGk5JgM&refer=home
 
The only district bank with real power is New York. What Bernanke and New York says goes.
St Louis doesn't figure in anyone's idea of a world financial center. No one gives a flying f*ck what Poole does.
 
Surely St Louis Fed will lower its discount rate next monday. On the other hand, Poole is a first class specialist in monetary economics. An old 1970's paper laid down the basics to use interest rate as the instrument of the FEd instead monetary targetting. His opinions obviously deserve a flying f*ck.
 
Quote from Scribe:

The official line is that he didn't want to "tip off" the media that the fed was meeting (via teleconference) so he stuck to his scheduled dinner plans with some college students and a dean. Uh huh.
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This is also a bunch of bull because the discount rate cut was obviously leaked to people on Thursday.

Poole would be a better head of Fed than Bernanke.
 
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