| i dunno.. i have this feeling that he will raise rates and maintain the current message of "we'll set interest rates according to the most recent data available"...
i have read some articles talking about an increase in foreclosures. obviously all the speculators who bought houses with interest-only mortgages (or even variable rate mortgages) are feeling a serious pinch right now.. plus, the market in general has little appetite for bullish speculation and is moving towards a strong focus on fundamentals (the market only does this when it believes a recession or slowdown is coming).
we can agree that the fed should stop raising rates for now - but will he? it wouldn't be the first time that the fed has opted to incite a recession in order to stave off inflation. and in this case, the inflationary pressures are extremely strong, and nearly impossible to contain via interest rates. |