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Realistbear

Ben To Announce Fed Rate At 2:15 E.t., 7:15 Our Time

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http://personal.fidelity.com/research/stoc...ketsindex.shtml

Fed may pause its rate rises

12:39 p.m. 08/08/2006

By Glenn Somerville
WASHINGTON (Reuters) - U.S. Federal Reserve policymakers Tuesday may break the chain of interest-rate rises they began two years ago but economists say this won't necessarily mean they are laying down arms against inflation.
The U.S. central bank faces the challenge of ensuring that its string of rate rises do not slow the economy more than that is needed to reverse accelerating inflation, fanned by soaring energy costs and and an upswing in labor costs.
Policy-setting members of the Federal Open Market Committee began meeting at 8:30 a.m. Washington time -- a half hour earlier than past custom for one-day meetings --
and are to announce a decision about 2:15 p.m.

I wouldn't want to place a bet on it but, IMO, Ben will nudge the rates up another .25% and remain vigilant.

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http://news.bbc.co.uk/1/hi/business/5257068.stm

Some analysts say that the Fed cannot do too much about rising inflation, because it is being stoked primarily by soaring energy costs - a factor over which it has no control.
"The time is ripe for the Fed to pull the plug on this tenacious two-year-old tightening cycle," said Merrill Lynch economist David Rosenberg.
"We are amazed at the number of folks out there who still feel the need for the Fed to raise rates further because of elevated inflation pressures.
"There is simply nothing the Fed can do about the current inflation backdrop right now."
However, Mr Rosenberg's counterparts at Goldman Sachs are forecasting a quarter-percentage point rise to 5.5%, although they admit it is "a close call".

Merrill Lynch says no, Goldman Sachs says yes. Just checked the US money CD market and they say no. I wonder what betfair say? We all know that the computer says no....

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Some analysts say that the Fed cannot do too much about rising inflation, because it is being stoked primarily by soaring energy costs - a factor over which it has no control.

:lol::lol: So the money suppy of the largest economy on Earth has nothing to do with rising commodity prices. The BBC just do not have a clue.

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Indeed: I'm continually amused by people who fail to see the link between massive credit expansion and rising energy prices...

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40 minutes and counting...........................

Getting ready to celebrate if its a hike. If not, its because recession is on the way sooner rather than later. HPC cometh either way.

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just put a fiver on backing a raise

6 minutes....................

I wish I had risked a tenner on a hike. Seems there is a good bias against a hike. But then they thought the BoE would stand pat and they didn't.

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6 minutes....................

I wish I had risked a tenner on a hike. Seems there is a good bias against a hike. But then they thought the BoE would stand pat and they didn't.

Getting quite excited there RB! :)

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6 minutes....................

I wish I had risked a tenner on a hike. Seems there is a good bias against a hike. But then they thought the BoE would stand pat and they didn't.

Yes I am betting with my winnings from the BOE rise had a tenner on that one :D

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Yes I am betting with my winnings from the BOE rise had a tenner on that one :D

1 minute---hope he is not late. The say Ben is shuffling papers and smiling at the press. Just winked when asked what the result is......this is dramatic....................

10 seconds..................

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DOW JONES INDUSTRIAL AVERAGE IN (DJI:^DJI) Delayed quote data Edit

Index Value: 11,275.25

Trade Time: 2:20PM ET

Change: Up 55.87 (0.50%)

Prev Close: 11,219.38

Open: 11,218.18

Day's Range: 11,218.18 - 11,275.25

52wk Range: 10,098.20 - 11,709.10

Word on the street is that any rally will be shortlived as recession is not good for earnings. Short term euphoria.

1 U.K. £ =

1 1.9131

Nice for our trade balance :o

DJ INDUSTR AVERAGE (DJI:^DJI) Edit

Index Value: 11,253.80

Trade Time: 7:22PM

Change: Up 34.42 (0.31%)

Prev Close: 11,219.38

Open: 11,218.18

Day's Range: 11,218.18 - 11,276.29

52wk Range: 10,098.20 - 11,709.10

Volume: 113,215,696

Very short lived? :ph34r:

Edited by Realistbear

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The markets will interpret this as an end to the current sequence of rising interest rates (in the US). Hence expectations of growing profits when they start to come down later.

Glad I've got a few shares (a very few btw).

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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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