Wednesday, June 14, 2006

Perceptions


Will the summer slow down to put the breaks on the FED,thats the question?

Has the FED chair made an effort to change the preception from the FED is finished to the FED has a lot more to go to achieve the greatest impact when the FED stops raising rates later this summer ?

Normaly a new FED chair comes in and raises rates to prove himself an inflation fighter ,but given the flattness of the yield curve ,long term inflation seems no where to be found. So this blogger thinks the FED has looked to change the perception of interest rate moves instead of actualy change the policy.

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