The Risk of Overbuilding

The Fed needed to take leadership this past week and actually do the hard work of either cutting 50 bips or raising 50 bips. This middle path is the absolute worst path because trying to thread a needle in this complicated economy, I think, is just going to be impossible. The markets have completely said we now discredit what you did. They're basically banking that the Fed will be forced to cut rates massively in short coursebecause the crisis will be so severe it'll outweigh the risk of inflation.