\u201cThe Fed\u2019s policy makers seem reluctant to say what everyone seems to know: that the risk to economic growth is the predominant concern today,\u201d\u009d said Brian Sack, an economist at Macroeconomic Advisers, a St. Louis-based forecasting firm….<\/p>\n
\u201cConsumers can get credit, but it is harder now and more costly than it should be,\u201d\u009d said Mark Zandi, chief economist at Moody\u2019s Economy.com.<\/p>\n
Mr. Zandi and others were particularly critical of the Fed for not cutting the discount rate by at least half a percentage point and extending the loans to 90 days instead of the present 30 days. Banks often fund their operations by borrowing for 90 days at the London interbank rate, which is now just over 5 percent. Allowing banks to borrow at a significantly lower rate from the Fed\u2019s discount window, and for longer terms, economists said, would send a clear signal to financial institutions to encourage more activity.<\/p>\n