Bloomberg reports that it's going to be hard for Bernanke to raise rates in the near-term future as the financial sector fights for its life:
"``The Fed's message that substantial downside risks have diminished now just seems completely ill-timed,'' said Brian Sack, senior economist at Macroeconomic Advisers LLC. ``It is hard to see them tightening anytime this year.''
Momentum for a rate cut seems to be declining:
"Traders, who last month foresaw an interest-rate increase as soon as August, now anticipate the Fed will hold off until October, with the chance of a move by year-end dropping to 67 percent from 100 percent, futures contracts show."
Related Articles:
Is Cheap Money Era Coming to an End? by PhilR - Jun 20, 2007
Summer Vacation for the Fed by PhilR - Jun 23, 2007
Weak Retail Sales Could Convince Fed to Cut Rates by PhilR - Sep 15, 2007
Heads in the Sand -- Inflation sure ain't "moderate" by walt - Jun 29, 2007
Fed Rate Cut Could Cause Major Problems by Sam Cass - Sep 05, 2007
Credit Crunch May Prevent Fed from Raising Rates by Sam Cass - Sep 06, 2007
The Fed Cuts Rates by Half a Percent (50 Basis Points) by BestCash Admin - Sep 18, 2007
PIMCOs Bill Gross Sees Federal Funds Rate a 3% by PhilR - Dec 11, 2007.
Summer Vacation for the Fed by PhilR - Jun 23, 2007
Weak Retail Sales Could Convince Fed to Cut Rates by PhilR - Sep 15, 2007
Heads in the Sand -- Inflation sure ain't "moderate" by walt - Jun 29, 2007
Fed Rate Cut Could Cause Major Problems by Sam Cass - Sep 05, 2007
Credit Crunch May Prevent Fed from Raising Rates by Sam Cass - Sep 06, 2007
The Fed Cuts Rates by Half a Percent (50 Basis Points) by BestCash Admin - Sep 18, 2007
PIMCOs Bill Gross Sees Federal Funds Rate a 3% by PhilR - Dec 11, 2007.
Add to reading list
