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Fed’s Stern Says 1990s Recession Offers Valuable Guide to Current Turmoil

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The current economic turmoil is comparable to the early
1990s
, which can be a valuable guide to understanding what’s
next as the U.S. economy seeks to rebound into healthy growth, according
to one Fed official on Thursday.

Minneapolis Fed President Gary Stern, a voter on the
FOMC who is known to tilt towards the hawkish viewpoint, said…

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Fed’s Stern Says Credit Crunch to Last Longer, Could Get Worse

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In an interview with the Financial Times over the weekend, Minneapolis
Fed President Gary Stern (voter) said the credit
crunch
in the U.S. would last for several more months and
conditions could deteriorate further.

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July 28th, 2008 at 6:50 am

Fed’s Stern Says Fed Can’t Wait for End of Crisis to Raise Rates

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Speaking in an interview with Bloomberg on Friday, Minneapolis Federal
Reserve President Gary Stern (voter) said that the Federal Reserve
can’t wait for the end of the crisis to raise rates.

“I worry about the prospects for inflation, the headline inflation
rate is clearly too high,” said Stern.

Stern noted that the Fed is well positioned for a downside risk to
growth. He commented that the current credit crisis was reminiscent of
the early 1990s.

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