Two KC-area leaders have differing views on Fed's rate cut, state of economy

The Federal Reserve botched its recent interest rate cut, contend two high-profile Kansas City area leaders fretting the fate of the economy.

On that much, at least, they agree. Here’s where they differ: One wanted more, and the other wanted none at all.

Worldwide financial markets wobbled all week with indecision about who is right and whether we should worry more about recession or inflation. The focus of debate is the Fed’s quarter-point cut in short-term interest rates on Halloween. It was the central bank’s second cut in six weeks.

That’s not good enough, says Bill Zollars, chief executive officer of YRC Worldwide Inc. in Overland Park. Zollars has built YRC, formerly Yellow Freight, into a 20 percent share of the nation’s over-the-road hauling capacity. His read of transport volumes, considered a reliable indicator of future economic activity, suggests the economy is hitting the brakes.

“People are still underestimating the softness out there,” Zollars said. “In the shipment economy — people who make stuff and retailers — I think we are in a recession.”

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