A Bold Idea for Bernanke

Frederic Mishkin thinks the Fed should cut rates quickly if home prices tumble
Frederic Mishkin

The Federal Reserve Board usually moves with elephantine majesty. But a fast-talking New Yorker on its Board of Governors, Frederic S. Mishkin, has broached the idea that the Fed could prevent a lot of damage from a severe housing slump by acting swiftly and cutting interest rates aggressively even before the slump's impact on the broad economy is evident.

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