For the first time since the markets reopened after September 11, the Federal Reserve today stunned Wall Street by making an emergency cut in interest rates. In 2001, it was a half a percentage point; today it was three-quarters, a week earlier than expected, and bigger than any such cut since 1982. The Dow plunged anyway, then went back up in supposedly hard-hit sectors, including home-repair and high finance. Overall, the markets were down. Is a recession around the corner or already here? The White House and Congress are working up a "fiscal stimulus package." Will it make things better or worse? What's the role of election year politics?
Economic Trouble in an Election Year
Tom Petruno - Business Reporter, Los Angeles Times, Gus Faucher - Director of Macroeconomics, Moody'sEconomy.com, Stephen Moore - Heritage Foundation - @StephenMoore, Jared Bernstein - Center on Budget and Policy Priorities - @econjared, David Lightman - McClatchy Newspapers - @LightmanDavid