Saturday, January 26, 2008

What Does Bill Poole Know?

Bill Poole heads the St. Louis Fed and formally dissented when the Fed cut rates last week. It was reported that he preferred to wait until this week's scheduled meeting to cut rates. I am not sure if there were other reasons behind Dr. Poole's decision. If there were I would like to know what they were. For a Fed president to dissent at an inter-meeting cut seems a bit odd. It would seem that the evidence to support an inter-meeting action by the Fed would be so overwhelming that everyone who was voting would support the move. That Dr. Poole voted against the move is very curious.

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