19 October 2001, 12:39 Fed's Poole: Ready to Ease Again if Necessary
St. Louis Federal Reserve Bank President William Poole Thursday said the Fed is
ready to cut interest rates again "if necessary" in face of a possible,
though not certain, recession and said the Fed must be wary of a "false
dawn" that might cause it to tighten credit too soon. At the same time,
the anti-inflation zealot warned, the Fed must not "overstay policy
ease." Poole, in remarks to the University of California-Davis, said the
economic outlook is afflicted with uncertainty, but said he is confident
about the long-term outlook. Low inflation, a strong banking system and
monetary and fiscal stimulus are among the things that should insure
recovery, he said.
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