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Realistbear

Official: Fed Increase Rate .25%

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http://www.usatoday.com/money/economy/fed/...statement_x.htm

The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 4-1/2 percent.

Although recent economic data have been uneven, the expansion in economic activity appears solid. Core inflation has stayed relatively low in recent months and longer-term inflation expectations remain contained. Nevertheless, possible increases in resource utilization as well as elevated energy prices have the potential to add to inflation pressures.

The Committee judges that some further policy firming may be needed to keep the risks to the attainment of both sustainable economic growth and price stability roughly in balance. In any event, the Committee will respond to changes in economic prospects as needed to foster these objectives.

Voting for the FOMC monetary policy action were: Alan Greenspan, Chairman; Timothy F. Geithner, Vice Chairman; Susan S. Bies; Roger W. Ferguson, Jr.; Jack Guynn; Donald L. Kohn; Jeffrey M. Lacker; Mark W. Olson; Sandra Pianalto; and Janet L. Yellen.

In a related action, the Board of Governors unanimously approved a 25-basis-point increase in the discount rate to 5-1/2 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Kansas City, Dallas, and San Francisco.

Edited by Realistbear

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ok sounds like they ain't done yet then!!!!!

some analysts were expecting to stop here.

NOW THIS BIT GETS INTERESTING!!!!,,UK AND US RATES ARE AT PARITY!!!!

.......STERLING AT $1.78.....WATCH THE DIRECTION VERY CLOSELY FOLKS!!!!

....if we continue upwards there's probably a hint of rate RISE!!!!!!

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http://www.usatoday.com/money/economy/fed/...statement_x.htm

In a related action, the Board of Governors unanimously approved a 25-basis-point increase in the discount rate to 5-1/2 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Kansas City, Dallas, and San Francisco.

Right peolpe, two thirds of the members on the boards of these reserve banks are nominated soley by private banks.

I feel this means the big private banks are very, very nervous there is to much money out there. This is a smoking gun for credit tightening.

We all knew this would happen, how far will Bernanke take the hardening?

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  • 301 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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