The Coming Cut

I'm not fool enough to try to predict macroeconomic trends. I will say, though, that when the Fed chief hints at the prospect of a big rate cut on the heels of bad holiday retail sales, my first instinct is to think "panic!" rather than "looks like Ben Bernanke is responding appropriately to signs of economic trouble!" Both, however, seem like reasonably valid responses.

UPDATE: Krugman votes for doom, says interest rate cuts effect the economy mainly through their impact on the housing market, but it may not be possible to further prop-up the housing market at this point.

Presented by

Matthew Yglesias is a former writer and editor at The Atlantic.

Why Principals Matter

Nadia Lopez didn't think anybody cared about her middle school. Then Humans of New York told her story to the Internet—and everything changed.

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register with Disqus.

Please note that The Atlantic's account system is separate from our commenting system. To log in or register with The Atlantic, use the Sign In button at the top of every page.

blog comments powered by Disqus

Video

A History of Contraception

In the 16th century, men used linen condoms laced shut with ribbons.

Video

'A Music That Has No End'

In Spain, a flamenco guitarist hustles to make a modest living.

Video

What Fifty Shades Left Out

A straightforward guide to BDSM

More in Politics

Just In