Forbidden Donut

Increased inflation is awesome! It's like the fed has two tools at their disposal (3 if you ask Keynes) and they refuse to think outside of that framework...

"If we cut the rates then inflation speeds up!"
"But if we don't cut the rates how will we open up the credit market!"
"ummmmmmmmmmmmmmmm."
"CUT THE RATES!"

edit: to what by the way? Isn't it like 1.25 now? Sounds like it'd be bad news if they went below 1... that's like giving away free money to banks while the banks get to continue citing a weak economy as a reason for a credit freeze.

50 bps reduction to 1%. Anticipated.

MMMMM federal reserve goodness...

That shit's like crack, yo!

Isn't it generally bad when the rate of inflation is higher than the interest rate?

Wait... what did Russia do to ruin its economy way back when? Oh yeah... they printed tons of money.