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Commentaries — September 1, 2005

Hurricane Perspective The events of Katrina may encourage the Federal Reserve to abandon its measured pace of rate hikes and reverse course to provide sufficient liquidity in the banking system. The historic precedents of the panics of 1873 and 1907 can be cited. The surge in reconstruction-related credit demands and the inflation risks posed by… Continue reading Untitled

Open Hurricane Perspective
The events of Katrina may encourage the Federal Reserve to abandon its measured pace of rate hikes and reverse course to provide sufficient liquidity in the banking system. The historic precedents of the panics of 1873 and 1907 can be cited. The surge in reconstruction-related credit demands and the inflation risks posed by easier credit may cause the bond market to reassess its rally.