Diverse Reactions to the FED Rate Cut

Brad DeLong notes that Martin Feldstein would have gone for a 100 basis points drop and that the normally cautious William Poole did not dissent from the 50 basis point cut.

CalculatedRisk highlights a couple of the reactions from the WSJ crowd including this from Peter Schiff:

Today’s irresponsible 50 basis point reduction is really just the hair of the dog that bit us and is a tacit admission that our economy is addicted to cheap money… A Fed bailout in the form of rate cuts will neither prevent the recession nor keep house prices from collapsing. It may slow the process down a few quarters, but it will cost us dearly.

Oh dear, Mr Schiff sounds a lot like AB reader Don Marek. My view is a lot closer to that of Martin Feldstein.