Friday, Oct 23, 2009

Will the Fed squeeze in a couple of rate hikes next year

Citywire: Recovery Watch: US rate rises pencilled in as Fed cracks

The US Federal Reserve has been utterly consistent in promising low interest rates for the foreseeable future but at the latest meeting of its rate-setting committee the first hawkish note was struck. Having sung from one hymn sheet since early 2008 when the central bank instigated a surprise mid-month rate cut, tensions are now becoming apparent. In the most recent meeting notes issued last week, voices were clearly heard questioning orthodox views on spare capacity and the massive stimulus. For the first time, a hint of doubt about inflationary expectations crept in – with one member even proposing an immediate halt to the asset purchase programme.

Posted by jack c @ 12:03 PM (642 views)
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1 Comment

1. cynicalsoothsayer said...

"it’s only in light of the extraordinary circumstances of the past year that a roomful of academics have managed to agree for that long"

They must be all wrong then.

Friday, October 23, 2009 08:29PM Report Comment

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