Our guesstimation on how big of move the Federal Reserve should be making in cutting the interest rate is a half point of one percentage point. We (the Reporting-Ethics Republicans) would make this move to hopefully jump start the mortgage industry and to help out the different financial and commodity markets. It will be the first of more to come.
In arriving at this conclusion, we are taking into consideration: the Mortgage market (foreclosure rates), Consumer psychology, Financial services/stock market and Commercial borrowers. All of these need to be taken into consideration when trying to take or tame the inflation rates.
We understand that this is quite a huge move. This is despite other armchair or coffee shop economists only calling for a quarter percent move. We trive living on the edge of it.
But we feel this amount needs to be made to jump start the economy. Something that has been hurt by the recent layoffs, sub prime mortgage problems and the conflict in the middle east. It will be the first of a number moves or drops the federal reserve will be making in the coming months.
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