Dr. Irwin Kellner, CBSMarketWatch economist and Weller professor at Hofstra, concludes that rate hikes are eminent. Brilliant! But what gets me is his parting salutation... As I recall, money has been considered cheap from about 5% all the way down to the present rate. Unless the Fed raises rates to 6% this summer or fall.... I'd say money will continue to be relatively cheap for the next 2-3 years minimum. That presumes a 1/4 point increase in rates on average per quarter. Comments?
Money supply growth appears to have reversed (in the very short term). While a plain ol' rate hike today might be a bit far-fetched, I certainly expect to see some sort of cautionary inflation message.
rates are just a bi-factual of the realism going on here. rates wont dictate by themselves. on the other hand we will be in the middle of the mess. all in all we should just sit and see. sitting around thinking and confronting does us no good if what we foresee in the future being dictated by none other than the ones controlling it all !
Hmm, you're right; however, I still think it's the trend of rates rather than the absolute level. All depends on where we're headed...
Gonna be tuff for the fed to ignore that publicity stunt. Bearing in mind the "rate hike" is mostly image, it does have power and it is useful. Seems to me to be a challenge for Uncle Al to avoid it pre-election. But if anybody can, he's the man.