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The Fed’s emergency interest cut: There’s a new sheriff in town
Magazine article

The Fed’s emergency interest cut: There’s a new sheriff in town

Stephen Cecchetti
VoxEU
01/23/2008

Abstract

Federal Reserve Banking Economics
A 75 basis point cut is biggest since the Fed instituted its current procedures more than two decades ago. Steve Cecchetti, the most popular Vox columnist by far, explains that the Fed was not reacting to the stock market drop. The signal is that there is a new sheriff in town; when he see changes in the economy that compromise medium-term stabilization objectives, he will do what needs to be done and do it right away.

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