Sisyphus Posted February 22, 2006 Share Posted February 22, 2006 (edited) January CPI CPI (MOM) 0.7% (vs market expected 0.5%) Core CPI (MOM) 0.2% (vs 0.2%) CPI (YOY) 4.0% (vs market expected 3.8%) Core CPI (YOY) 2.2% (vs 2.1%) 2.1% (vs 2.2%) - sorry wrong way around The point in looking at core CPI is to take out temporary fluctuations in food and energy prices. The problem is that high energy prices have been with us for some time and are inflationary. I'd vote for a 0.5% rate hike! Edited February 22, 2006 by Sisyphus Quote Link to comment Share on other sites More sharing options...
?...! Posted February 22, 2006 Share Posted February 22, 2006 I think 0.5 hike would send shockwaves around the globe. The Fed and the BoE seem happy with .25 adjustments these days. 0.5 would be seen to carry a strong message. Quote Link to comment Share on other sites More sharing options...
karhu Posted February 22, 2006 Share Posted February 22, 2006 0.5 would be seen to carry a strong message. If that ever happened there'd be economic chaos. Quote Link to comment Share on other sites More sharing options...
?...! Posted February 22, 2006 Share Posted February 22, 2006 If that ever happened there'd be economic chaos. Agreed, hence the "shockwaves around the globe" mentioned above. Quote Link to comment Share on other sites More sharing options...
bubbleturbo Posted February 22, 2006 Share Posted February 22, 2006 When is the next Fed IR decision?? The BBC are saying it is at the end of March, which would be odd. Quote Link to comment Share on other sites More sharing options...
?...! Posted February 22, 2006 Share Posted February 22, 2006 19:15 28th March 2006 Is when the Fed will announce a 0.25% increase in the base rate. Oh no! I've let it slip Seriously, inflation is ahead of what they are "targeting" so it might be wise to assume some action. It's being priced into the currency markets now anyway, which is something we can look forward to more of with Bernanke. Greenspan would have hated the idea the markets pre-empted his announcements. Thats just the differing styles of their management. Quote Link to comment Share on other sites More sharing options...
Guest Posted February 22, 2006 Share Posted February 22, 2006 Thats just the differing styles of their management. They manage this?? Quote Link to comment Share on other sites More sharing options...
JustYield Posted February 22, 2006 Share Posted February 22, 2006 It's being priced into the currency markets now anyway Prove it. Quote Link to comment Share on other sites More sharing options...
bubbleturbo Posted February 22, 2006 Share Posted February 22, 2006 But what has happened to an interest rate decision for Feb? Quote Link to comment Share on other sites More sharing options...
pyewackitt Posted February 22, 2006 Share Posted February 22, 2006 If that ever happened there'd be economic chaos. The question is 'economic chaos today or economic disaster tomorrow'? - Pye (Property Speculation Ninja ) Quote Link to comment Share on other sites More sharing options...
?...! Posted February 22, 2006 Share Posted February 22, 2006 Prove it. The dollar has strengthened about 4% in a month. You will have to check it out yourself sorry. Quote Link to comment Share on other sites More sharing options...
Sisyphus Posted February 22, 2006 Author Share Posted February 22, 2006 Prove it. 27 of 28 economists polled by Bloomberg expect rates to rise by 0.25% to 4.75% when the fed announce on March 28th. 0.5% aint going to happen - just wishful thinking on my part. Quote Link to comment Share on other sites More sharing options...
?...! Posted February 22, 2006 Share Posted February 22, 2006 But what has happened to an interest rate decision for Feb? I have no idea. Maybe delayed due to the Chair changing hands. Or maybe the Fed sets rates on an erratic basis? Doesn't really matter. Monthly economics are too noisey to base decisions on. IMO Quote Link to comment Share on other sites More sharing options...
Jason Posted February 22, 2006 Share Posted February 22, 2006 When is the next Fed IR decision??The BBC are saying it is at the end of March, which would be odd. The FED look at interest rates on 8 week intervals, whereas it is monthly here in the UK. Quote Link to comment Share on other sites More sharing options...
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