We need a rate increase to shore up the dollar and to reduce inflation.
See my last. The Fed is damned if they do or don’t. We’re cornered, the result of our credit bubble excesses. It’s too late to be saved by Bernanke pulling a Volcker. Won’t/can’t work this time.
We certainly overdid the cuts in the last 2 sessions. The fed was over-reacting to the "subprime" scare, without giving strong consideration to the inflationary effects of the weak dollar. The price of oil and all imported goods will increase in terms of dollars even though they are not becoming scarce. What needs to become scarce is dollars.