The Fed's Rate Cuts Aimed at Reviving Goldilocks May Stir the Inflation Bear

The early version of the Goldilocks fairy tale had a decidedly gruesome, pro-bear ending in which the fussy maiden meets her death as a snack for the bear family. A similarly fidgety Federal Reserve could be doing the same thing to the once invincible "Goldilocks" economy.

The Fed has been given the lion's share of credit for maintaining this expansion for longer than anyone expected. But these days, the economic situation is far from "just right." A number of skeptics are concerned the Fed's aggressive rate cuts aimed at averting an inevitable "too cold" economy will yield a more treacherous "too hot" economy not far down the road.

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