Leading Rich

Is the rate cut too little and too late?  A quarter point rate cut does not really mean much in this declining real estate market.  Even the stock market is disappointed in the minutes following the announcement (Dow Jones Industrial Average Down 230 points at 3:00 PM EST) .Lately the discussion has been “is the Fed trying to appease Wall Street, Mortgage Holders, Bank’s or staying the course by keeping the economy under control and inflation in check”.  The role of the Federal Reserve and Ben Bernanke are to manage all of the above.  They did not create the credit mess or are they responsible, but they do have the ability to provide relief to many of the people in this country affected by rising rates.

Ben Bernanke and the folks at the Fed have the power to ease the credit crunch, but are not.  Is there another motive in not reducing rates?  Is Bernanke trying to show he has a great amount of power to show he is in control and Alan Greenspan is out.

Photo: AP Photo: Federal Reserve Board Chairman, Ben Bernanke, speaks at the CATO Institute’s annual Monetary Conference in Washington in this Nov. 14, 2007 file photo.