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Uk - Usa Rate Parity: 4.5%

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Thanks for reminding me what I was waiting for ! excellent news.

Makes a change from people wondering why romantic love and nuclear families do not work.which is an interesting thread but rather sad. Very much a sign of our times.

I should rename myself 'waiting for the buying opportunities'

best wishes to all

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Dow reacted by moving further into negative territory with the $ rising substantially. I think the market is reading the Fed as bearish. What does "may" mean? Perhaps Bill Clinton could shed some light?


Market down after statement doesn't feed investor bets that an end to rate hikes is near.
January 31, 2006: 2:28 PM EST
NEW YORK (CNNMoney.com) - Stocks slipped Tuesday afternoon after the Federal Reserve boosted a key short-term interest rate by a quarter-percentage point as expected, but failed to imply in its statement that an end to rate hikes is near.

Looks like IR have a way to go--will Gordon keep up?

Edited by Realistbear

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the governments haven't printed much over the last 4 years. (not as much as they would like)

they've got a lot of catching up to do.

when you print big. you have to put up rates to stop public spending it so much.

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Next Fed hike in March?

WASHINGTON (AFX) -- The odds that the Federal Reserve will raise overnight

interest rates on March 28 moved slightly higher Tuesday after the Fed raised

the federal funds rate to 4.50% and suggested more rate hikes "may" be needed.

Prices of federal funds contracts trading on the Chicago Board of Trade implied

an 84% chance of a March rate hike to 4.75%, up from a 76% chance before the

meeting. The odds of a second rate hike to 5% sometime in the year rose from 24%

to 28% in the wake of the meeting.

This story was supplied by MarketWatch. For further information see


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According to Stephen Roach, chief economist at Morgan Stanley, the Fed "now faces a most perilous post-bubble exit strategy - taking real interest rates up to a more normal level".

"That, in my view, will be an exceedingly delicate exercise," he said.


There is a feeling that Mr Bernanke may look to push US interest rates up once more in an effort to show the market he is serious about fighting price growth.

"It is understandable that a new Fed chairman would want to prove his inflation-fighting mettle right away," said economist David Jones. "But I think there is a danger that housing is more vulnerable than people realise."

The worry is that should rates move too high, then they may ***** the housing price bubble and stunt consumer spending, the main motor of economic growth.


Edited by frugalstar

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  • 339 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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