The Fed and the ECB must avoid becoming fixers of last resort
“‘ knew they would cave in.’ That was the cutting remark from an old Wall Street hand to one of my first forecasts that none of the economic indicators justified an imminent interest rate cut by the U.S. Federal Reserve.”
USAGOLD note: Ivanovitch, formerly an economist with the OECD and the New York Fed, takes a seat alongside a number of analysts (most associated with the central banks) who think that federal governments need to deter disinflationary, even deflationary, forces in the global economy through government spending programs. The Fed and ECB, he argues, cannot do it alone. A turbo-charged ‘fiscal solution’ is so far from reality in the European Union and the United States that few consider it part of the on-the-ground analysis.
Repost from 9-30-2019