Durka-Durka-Muhammed-Jihad!!
I'm no expert on economics, but wouldn't this be a sign of a expanding economy?
Fed Expected to Deliver Fifth Quarter-Point Rate HikeNow, I'm certain that there will be people who will split hairs (?) over the exact definition of 'economy' and of what specific numbers comprise the analysis that the Federal Reserve uses to determine when the economy is in need of economic retardation.WASHINGTON (AP) - With a fall in oil prices easing inflation concerns, the Federal Reserve is expected to continue its easy-does-it approach to raising interest rates, boosting a key rate by a moderate quarter-point at its final meeting of the year Tuesday.
Many analysts believe this pattern of gradual quarter-point rate increases will continue well into the new year. Solid economic growth and an absence of inflation pressures mean Federal Reserve Chairman Alan Greenspan and his colleagues can take their time in moving away from exceptionally low interest rates.
But what I have wondered about for the last year or so - especially during the election - was if the economy was in the 'crapper' (as was claimed by most Kerry supporters), then why would the Fed keep raising the interest rates?
Wouldn't raising the prime lending rate in a 'crappy economy' just make it worse?
It just doesn't make sense if one is to believe the *cough* claims made by John Kerry as to why he would have been better for America over President Bush.
Maybe some anti-Bush/pro-Kerry supporter could enlighten me as to this dichotomy.....
My wife works in the lending field, and she says that you're absolutely correct. It hurts her bu
Read more in 'Economy in the Toilet'?
Comments on 'Economy in the Toilet'?
My wife works in the lending field, and she says that you're absolutely correct. It hurts her business when the economy improves, because the Fed always responds by raising rates. Good economy=higher interest rates.
|| Posted by Steve, December 13, 2004 03:47 PM ||