Thursday, September 6, 2007

Unemployment figures and Fedspeak

Today Poole is now saying there is a risk of a recession and central banks have a responsibility to limit the downside; Fed governor Kroszner said banking crises hit the economy harder than other crises, and that financial stress has spread beyond mortgage markets, and that the Fed is still monitoring financial markets closely; and Yellen said things started with sub-prime woes. You don't have to parse these statement like Bill Clinton to understand their meaning. The Fed wants to cut.

Will weakness in the unemployment figures tomorrow give them that cover? From their statements, it appears that way.

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