Lackey: def A servile follower.
Yesterday afternoon, Jeffrey M. Lacker, President of the Federal Reserve bank of Richmond, pulled a "Poole." He said the Fed was still concerned about inflation, and tried to show there was still some indecision on the Fed cutting interest rates.
Does anyone buy that? Apparently, some did, as the market dropped 50 points yesterday afternoon, and is opening sharply lower today.
Do I buy Lacker's comments? Are you kidding me? The LIBOR rate moved up for the 11th day in a row, and the ECB meets tomorrow. I believe the ECB will not raise rates tomorrow, giving the Fed move to cut 50 basis points, as I've been advertising.
And Lacker? He's the Fed governor who wanted to raise rates, being a dissenting vote. So we should listen to him? The WSJ today said Virginia's 2007 tax collection were $234 million below target, and this year $407 million below estimates. Virginia's Governor, Tom Kaine, plans new budget cuts, and the Secretary of Finance, Jody Wagner thinks Virginia is in a "prolonged slowdown."
Maybe they should talk to Lacker!