Orlando Real Estate

What's up? Interest Rates - Maybe

May 14th, 2007 10:41 AM by David W. Welch

In the latest Fed meeting nothing changed, so why would people be worried about interest rates? The most important tools the Fed has are the words they use to describe the economy. This time around many people were expecting the Fed to say something a little more encouraging about inflation. They did not. In fact they continued the same language they have been using. Core prices actually did not budge in the latest report (ie no inflation), but the Fed remains ever watchful of inflation as the number one enemy of the economy. That recent inflation report sent the stock market soaring, but the Fed could bring the bond and stock market down with their unchanging comments.
Posted in:General
Posted by David W. Welch on May 14th, 2007 10:41 AM


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