Fed's fears of deflation could prompt another rate cut

11/20/2008 | Financial Times (free content) · Bloomberg

Don Kohn, vice chairman of the Federal Reserve, said the central bank should be "as aggressive as we can be" with monetary policy to stimulate growth, suggesting that the Fed is seriously worried about the U.S. slipping into a deflationary spiral. His comments come as meeting minutes released by the Fed boost expectations of another interest-rate cut, possibly by as much as 50 basis points.

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Financial Times (free content) · Bloomberg

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