Wednesday, June 18, 2008


At last the US Fed has come to accept the real threat of inflation.
Rising food and fuel prices, rising unemployment, a falling housing market and prospects of a deeper than expected recession are hurting consumer demand.
The FED is looking to possibly raise rates to tackle inflation and support the US Dollar.
The struggling US Housing market and Mortgage derivative market will react negatively to any rate hike.
Calling Bernanke's Bluff ???
Can he actually raise rates and risk a market meltdown ?
Can he hike rates before the upcoming elections?
Will he allow the EURO,USD interest rate differential to widen if the ECB raises rates?

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