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Fed's Central Governor Weighs In With I R Hike Warning

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http://money.cnn.com/2006/06/06/news/econo....reut/index.htm

Fed's Poole: slowing economy may not curb inflation

Report: Central bank governor recommends being aggressive on rates in bid to curb rising prices.

June 6, 2006: 12:49 PM EDT

NEW YORK (Reuters) - If inflation expectations are rising, a slowing economy may not reduce inflation pressures, said St. Louis Federal Reserve President William Poole, quoted in the Wall Street Journal online edition.
"If inflation turns out to exceed our expectations, our target range, I do not believe we can count on a slowing economy to bring inflation down, by itself, quickly," Poole, said in an interview with the Journal published Tuesday.

With Ben's finger on the option button, thre are 2 choices:

A. Inflation

B. Recession

Looks like option B it is. Ben appears to have the full backing of the Fed Reserve team. They are going for the jugular and its full steam ahead with the hikes and damn the torpedoes (house prices).

With Gordon, there are also 2 choices:

A. No. 10

B. Inflation

My guess is that he will hit the A button and order the BoE to do nothing until he gets into No. 10 by which time inflation will be well beyond the 3.5% range it probably already is.

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http://money.cnn.com/2006/06/06/news/econo....reut/index.htm

Fed's Poole: slowing economy may not curb inflation

Report: Central bank governor recommends being aggressive on rates in bid to curb rising prices.

June 6, 2006: 12:49 PM EDT

NEW YORK (Reuters) - If inflation expectations are rising, a slowing economy may not reduce inflation pressures, said St. Louis Federal Reserve President William Poole, quoted in the Wall Street Journal online edition.
"If inflation turns out to exceed our expectations, our target range, I do not believe we can count on a slowing economy to bring inflation down, by itself, quickly," Poole, said in an interview with the Journal published Tuesday.

With Ben's finger on the option button, thre are 2 choices:

A. Inflation

B. Recession

Looks like option B it is. Ben appears to have the full backing of the Fed Reserve team. They are going for the jugular and its full steam ahead with the hikes and damn the torpedoes (house prices).

With Gordon, there are also 2 choices:

A. No. 10

B. Inflation

My guess is that he will hit the A button and order the BoE to do nothing until he gets into No. 10 by which time inflation will be well beyond the 3.5% range it probably already is.

You forgot choice C: stagflation.

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You forgot choice C: stagflation.

We might see that along with a recession that affects commodoties and house prices leaving stagflation to deal with the other elements in the economy. It would be different at least.

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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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