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Unformatted text preview: Anna Veldman January 10, 2008 ECO 210-05 The Fed to the Rescue The chairman of the Federal Reserve, Ben Bernanke stated in a speech that the central bank will continue to lower interest rates, hoping to stop the economy from going into a recession. Many economists believe that economy is already in a recession, and some also believe that it is on its way to recession. Bernanke said in his speech that the Fed does not believe that the economy will go into a recession despite the beliefs of many economists around the country. By lowering the interest rates the Fed hopes to boost the economy. Lowering the interest rates encourages spending which can do nothing but help. Some economists think that it is too late for interest rates to be helpful with stopping a recession. The thought of Wall Street is that the Fed will lower rates by half a percentage point which would put them at 3.75 percent. Bernanke didnt suggest that the economy was currently in a recession; however he didnt describe the economy in a positive way. On the other hand he pointed out that it is often hard to didnt describe the economy in a positive way....
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