Defining Solutions -- And Problems
In a four-way debate, CNBC on-air editor Rick Santelli says that traders are split over whether a rate cut is really necessary: Those in "nasty positions want a bit of a handout," while "the investor bystander" tends to ask, "Why should anyone expect irrational requests to be honored by the Fed?"
Santelli contends that Bernanke should "have his own timeline" for action -- and not be "bullied" into a premature cut.
Larry Kudlow, host of CNBC's "Kudlow and Co.", maintains that a rate cut is not a corporate bailout, as "CEOs don't want inflation either." He believes the Fed "made a mistake two weeks ago when they ignored what was going on in the credit markets."
Alan Murray, executive editor at The Wall Street Journal, says that Bernanke is not ignoring the credit crunch, but differentiating between short-term problems and long-term "real threats" to the economy.
But Liesman believes that diluting focus may be the real problem. The only question that matters is "whether [Bernanke] steps up to the plate" on Friday and gives the markets his definitive outlook on the economy -- and specifies his intentions.