Federal Reserve Chairman Ben S. Bernanke's emergency interest-rate cut this week is either just what the doctor ordered or grounds for malpractice, depending on which prominent economists and investors you consult.
Stanford University Professor John Taylor says the move ``made sense'' and Harvard University's Martin Feldstein calls it a ``very good thing.'' Morgan Stanley's Stephen Roach counters that the decision was ``dangerous, reckless and irresponsible,'' and Nobel Prize winner Joseph Stiglitz says it resulted from ``bad economic management.''
The divergence of views stems from the timing of the reduction, less than a day after stocks tumbled from Hong Kong to London, raising prospects of a slide in U.S. markets. While Bernanke has warned of the danger that ``fragile'' markets pose to the slowing economy, some analysts say he risks rewarding investors who simply made bad decisions.
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