Inflation is a greater risk to the economy than slower growth, and the Federal Reserve may need to raise interest rates if price increases don't subside, Federal Reserve Bank of Dallas President Richard Fisher said. Source : Bloomberg http://www.bloomberg.com/apps/news?pid=20601087&sid=aJR8e0FZs1rA&refer=home
quite possibly yeah, i guess thats in paulson's court. i swear to god after looking at the nasty overseas gaps with commodities creeping up this morning i thought ok, either an outage today - talking rates higher, or both
Please see my ET post on 12/18 in "trading-House of Cards Ready to Fall" As i stated there, the rhetoric is likely to blame inflation (and there will be inflation) but the real reason the Fed will likely raise rates (as few times as they can, but at least once)during the "soft landing of 2007" is other than inflation.