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The Fed aggressively eased interest rates further in an emergency move Tuesday.
In fact, Alan Greenspan, chairman of the Federal Reserve Board, eased interest rates last week to offset the tightening in commercial loans.
Both the Federal Reserve and the European Central Bank have eased interest rates aggressively in recent weeks to stave off such threats.
Indications that the ECB could boost the firepower of the eurozone bailout fund pulled European shares out of their slump and eased interest rates on Spanish bonds.
America's troubles may still lie ahead.Another claim is that America's Federal Reserve has eased interest rates aggressively, whereas the Bank of Japan was slow to ease and so failed to prevent deflation.
"It is much less clear what the second half will look like when the comparisons are easier, the Fed will have eased interest rates and the money supply will have grown".
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The Bank of Canada is expected to ease interest rates next month.
It contributed to the Fed's decision to ease interest rates.
The Reserve Bank appears in no hurry to ease interest rates despite rising expectations of a rate cut before Christmas.
"They still have some room to grow; most people think the Fed hasn't stopped easing" interest rates, he said.
Mr. Bernstein also warned investors against expecting the Federal Reserve to ease interest rates quickly to help stocks.
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