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Article: RATE HIKE SHOWS FED OUT OF TOUCH WITH REALITY.(Editorial)(Column)
- Article from:
- Seattle Post-Intelligencer
- Article date:
- May 24, 2000
CopyrightCOPYRIGHT 2000 Seattle Post-Intelligencer. All rights reserved. Reproduced with the permission of the Dialog Corporation by Gale Group. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Last week's half-point interest rate hike to 6.5 percent is clear and convincing evidence that the Federal Reserve Board has completely lost touch with reality. The central bank has become obsessed with fighting a phantom inflation it fears might result sometime in the future because the Fed lacks faith in the free market's ability to balance demand with the supply of goods and workers during a booming economy.
The Fed's announcement of its sixth interest rate hike in a year was a demand-side caricature of Keynesian thinking so convoluted that it would make Lord Keynes himself blush. It assaults the common sense and sparks the skepticism of the American people by ...