Posted by D. Cupples | According to a press release from the Federal Reserve's Board of Governors, today the Open Market Committee lower its target for the federal funds rate 75 basis points to 2-1/4 percent. According to CNN, the Fed is very concerned about our nation's economy:
"The Fed began a series of cuts to its key interest rate in September, taking the rate to 3% from 5.25%. The central bank cuts rates in order to boost the economy and, in this round, to stave off a recession. But lower interest rates can also weaken the dollar, sending inflation higher.
"Through a series of recent speeches, Fed officials have made it clear that their primary concern is unemployment. Though they have stated that rising inflation is a worry, the central bankers have pledged to continue to cut rates in an attempt to prevent the economy from entering a recession and losing even more jobs." (CNN)
If jobs are what our government is worried about, perhaps Congress and the President could enact policies that would create major disincentives for companies wanting to send jobs overseas to places with cheap labor.
Perhaps our government could create disincentives for corporate executives to pocket tens- or hundreds- of millions of shareholder dollars and instead put more of that money toward creating decently paying American jobs.
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