They need to let people know they are not about to start a serious tightening of credit, otherwise the jittery markets might sell off in a serious fashion. The Fed is in a tough spot right now, and I don't think it will end well. Inflation is going to hit, it's only a matter of time. But if they don't cause inflation the deflationary bust would be spectacular, with all the debt out there. I don't see a way out except devaluation of the dollar in some form or another.
We just need to hold out long enough for the EU to collapses and all we be fine again. :hihi: This will not shut down lending. Hell, we couldn't cut that back much more and still consider banks "lenders". It seems like it will have a trickle down effect though. If you increase funding to a lender in one aspect of finance, the cost is simply passed on to the consumer via higher rates.
