Will Rahal

The Fed's Done All It Can For Now

High Interest rates are suffocating the economy already.

In the last three decades when the last(quarterly average) rise in interest rates takes place
and Nominal GDP year-over-year growth starts to decelerate , the Fed has
cut rates in within one quarter of this event, every time except for 1998.

This time around we are in the fourth quarter of declining Nominal GDP growth.

By this measure, Mr. Bernanke is already late!

The lower US Dollar, high CPI rate and the Chairman’s reputation, prevent
the Fed from lowering rates.