Associate Professor of Economics Ann Owen was quoted in a Christian Science Monitor article titled "Fed's tough call: how far to cut interest rates" on Tuesday, Jan. 29. The article discussed the choices faced by the Fed in determining what might stimulate the economy.
The article addressed how much rates should be cut and the possible risks in doing so. Numerous experts expressed their perspectives. Owen, the only academic cited, discussed the Fed's need to consider financial-market expectations. "If the Fed is not close to a half-point reduction, the market will be disappointed," said Owen who pointed to the problems in the financial sector as making the Fed's job even more difficult.
The article addressed how much rates should be cut and the possible risks in doing so. Numerous experts expressed their perspectives. Owen, the only academic cited, discussed the Fed's need to consider financial-market expectations. "If the Fed is not close to a half-point reduction, the market will be disappointed," said Owen who pointed to the problems in the financial sector as making the Fed's job even more difficult.
