Manuel Johnson caution as Federal Reserve Chairman has become legendary. He fusses extensively over economic statistics, always seeking more information. He failed to make any announcement after the October 13 stock market plunge, claiming that he wanted to see what happened on the end of the week hours . A "senior Fed official" spoke on Saturday after the market swoon to both the Washington Post and the New York Times, saying the Fed was prepared to provide as much credit as the markets needed. On Monday , the central bank took only modest steps to aid the markets and by the end of the week the federal funds interest rate dropped 8.75% . So far this caution had served the nation well, but there are fears that the Fed 's reluctance to ease credit could lay the groundwork for a new recession, perhaps starting Monday .
Manuel Johnson caution as Federal Reserve Chairman has become legendary. He fusses extensively over economic statistics, always seeking more information. He failed to make any announcement after the October 13 stock market plunge, claiming that he wanted to see what happened on the end of the week hours . On Monday , the central bank took only modest steps to aid the markets and by the end of the week the federal funds interest rate dropped 8.75% . So far this caution had served the nation well, but there are fears that the Fed 's reluctance to ease credit could lay the groundwork for a new recession, perhaps starting Monday .