How Setting The Fed Funds Rate Is Like Shooting Free Throws With Your Eyes Closed

The Fed may have lowered the Fed Funds Rate by 0.500%, but we won't know until mid-2008 if the move was good one or not. The Fed has repeatedly told us that it is "data dependent", meaning it can't make decisions about the Fed Funds Rate and the economy in advance of information becoming available. So, in this respect, the FOMC voting members walk a fine line between accelerating the economy, and grinding it to a halt. Predicting the future...