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Now what is the Fed going to do.


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#1 nimblebear

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Posted 03 March 2007 - 12:10 AM

... Like Alan did, because if he does that, the dollar will crater.

http://www.marketwat.....33DFB337DC81}
OTIS.

#2 Russ

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Posted 03 March 2007 - 01:18 AM

Looks like interest rates are going to rise...caught between a rock and hard place.

http://bigcharts.mar...&mocktick=1.png

http://bigcharts.mar...&mocktick=1.png
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#3 pdx5

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Posted 03 March 2007 - 02:40 AM

Yap, Fed is caught between Iraq and a hard place. If it lowers the rate to support housing, US dollar dives and inflation jumps. Then they will have to raise rates. If they raise the rates housing tanks. Either is bad for stocks. Better keep rates same and hope for Goldilocks to come to rescue.
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#4 Cirrus

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Posted 03 March 2007 - 04:47 AM

Very good article nimblebear. I agree. The next 6 to 9 months will be important for this regime at the Fed. What will they do? I'm predicting they will talk very tough on inflation and interest rates but will insure plenty of liquidity continues to flood the system. It's what they've been doing. If they risk a recession I think the attempted restart with lower rates will really cause inflation--or stagflation. JMHO.