The Federal Reserve Bank’s move to cut interest rates to virtually zero is scaring some liberal bloggers. Caroline Kennedy is picking up some prominent backers in her quest for the Senate, bloggers note. And neither President-elect Obama nor Democrats in Illinois state government are doing a good job of dealing with the Senate seat scandal, conservative bloggers write.
The Fed’s record low interest rate policy is reminiscent of Japan’s failed attempt to jumpstart its economy earlier this decade, writes Paul Krugman. Though the Fed is moving faster than Japan’s government did, the Fed’s cuts aren’t enough to deal with an economic crisis this big, writes Washington Note’s Steve Clemons.
Senate Majority Leader Harry Reid (D-Nev.) urged New York Gov. David Paterson (D) to choose