Fed risks ‘blood on the floor’ on rate cuts
The Federal Open Markets Committee may want further rate cuts but inflation fears limit their options, writes David Litterick
Underneath a grand chandelier and in the shadow of the Great Seal of State, the 12 members of the Federal Open Markets Committee (FOMC) decide at what level to set US interest rates.
Today, when the 11 men and one woman take their seats, they will have much to discuss.
Under Alan Greenspan, it was said, the chairman arrived at the meeting with the draft statement already written and in his pocket, his manner brooking no dissent. His successor, Ben Bernanke, has adopted a more collegiate approach and this week’s meeting - with four new members - is likely to prove an interesting clash.
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