AUDIO-Grant says Fed, markets like partners in”failing marriage”
The stock market and the Federal Reserve have been acting like partners in a “failing marriage” following Tuesday’s 25-basis-point interest rate cut, said James Grant, founder and editor of Grant’s Interest Rate Observer.
He was referring to the stock market’s sharp drop after the Fed’s rate action on Tuesday. Many on Wall Street thought the move was not aggressive enough to help stave off a recession.
“The Fed and the markets have had a kind of duet,” said Grant, speaking Wednesday at the Reuters Investment Outlook 2008 Summit in New York.