The Volckernomics Puzzle

High hopes for lower interest rates cause another wild week on Wall Street

Was it the long-awaited end to three years of tight money and high interest rates, or was it a risky short-term maneuver by the Federal Reserve Board to bolster the alarmingly depressed U.S. economy? Would interest rates continue falling or would they soon begin inching up again? Those were some of the questions businessmen, investors and economists asked last week as the stock market leaped then lurched, and interest rates plunged then firmed.

The cause of all the questions was the belief...

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