Fed Panel Lifts Rates and Says More Increases Are Probable

[NVMojo]

Great ...Bush's economy is really something to be desired, isn't it?

WASHINGTON, Dec. 14 - The Federal Reserve raised short-term interest rates on Tuesday for the fifth time this year and suggested that more rate increases are in order in the months ahead.

As expected, the central bank raised the federal funds rate on overnight loans by a quarter point, to 2.25 percent, and reiterated its intention to raise borrowing costs at a "pace that is likely to be measured."

The decision was a milestone of sorts, pushing the overnight lending rates in the United States above those in Europe for the first time since March 2001.

It also came just hours after the news that America's trade deficit shot up 9 percent in October to a monthly record of $55.5 billion, adding to anxieties among investors about the possibility of a sharp plunge in the foreign exchange value of the dollar.

more....

http://www.nytimes.com/2004/12/15/business/15fed.html?th

[ayeshahaqqiqa]

1. NY Times also said today

that the weak dollar policy isn't attracting new business. Outsourcing continues, and our national debt soars.

A question to someone who is into economics-does the raise in this interest rate reflect immediately on the rates charged to consumers? My boss has several small loans which he never pays off-just "rolls them over", paying the interest. I don't think he looks at the loan papers to see that the rate he's paying gets higher each time. I've tried to convince him to pay off these loans (I did pay off two), but he gets mad and says it is poor business to do this, and better to keep them. Anyone have arguments that would bolster my contention that a lot of little loans (all below $5000) should be paid off, and only the big loans should remain on the books?

[NVMojo]

2. my honey is into this stuff big time and says the consumer with

is going to get screwed even more then they have been already...

[dbt]

3. We'll soon see more of Greenspin's true colors.

Anybody remember HOW MANY times that lizard hiked interest rates in 2000 to keep the Clinton economy from "overheating?" And how he presented the Boy King with a RATE CUT even before the Coronation?

It will be interesting to see if bu$h gets the same treatment.

:evilgrin:
dbt