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I'm back! I hope everyone had a great Labor Day weekend. Since I'm labor too, I enjoyed my nice long three-day break.

Anyway, I wanted to share with you this article I noticed on Harvard economist Martin Feldstein's rather dire view of the economy. At the Fed's annual Jackson Hole shindig, Feldstein said the Fed should cut rates by a full 1%.

Lowering interest rates may result in a "stronger economy with higher inflation than the Fed desires," a situation that Feldstein described as the "lesser of two evils."

"If that happens, the Fed would have to engineer a longer period of slow growth to bring the inflation rate back to the desired level," said Feldstein, 67, president of the National Bureau of Economic Research. Some investors speculated that Feldstein was a candidate for Fed chairman before Bernanke was picked to succeed Alan Greenspan.

Bernanke wasn't in the room for Feldstein's speech, though most other Fed officials were, along with central bankers and economists from around the world who traveled to the annual mountainside conference hosted by the Kansas City Fed bank.

In other words, this isn't just Trump and Cramer talking about cutting rates.

Posted by edelfenbein at September 4, 2007 9:50 AM