Fed: Rates Unchanged, Pledges Patience

[leftchick]

http://story.news.yahoo.com/news?tmpl=story&cid=568&ncid=749&e=1&u=/nm/20040316/bs_nm/economy_fed_dc

<snip>
The unanimous decision by the rate-setting Federal Open Market Committee (news - web sites) keeps the trendsetting federal funds rate for overnight loans between banks at 1 percent, a level hit after a cut last June.

In its post-meeting statement, the U.S. central bank said upside and downside risks to economic growth were roughly balanced and repeated that chances of a drop in prices were nearly the same as an inflation pickup.

The FOMC also repeated it could afford to be "patient" about raising rates, implying that policy-makers feel scant pressure to boost credit costs despite a strengthening economy because inflation remains muted and job growth is anemic.

<snip>
"Although job losses have slowed, new hiring has lagged. Increases in core consumer prices are muted and expected to remain low," it added.

[jpak]

1. Rates won't go up until after the election

If Kerry is elected - interest rates will soar.

If Shrub is elected - interest rates will creep up ever so slowly.

If I were Kerry, the first thing I would do is dump Greenspan.

He's nothing but a snake...

[revcarol]

2. Does any one else think there is hidden inflation?

The government is printing money like it's going out of style. The stock market is up because too many $$ are pursuing too few investments.Prices on everything except clothing are going up..is this only from increased fuel costs to get things to market?

Does anyone else think that they are just keeping rates low until after the election, when "all of a sudden" they will just discover we had inflation all along?

Am I nuts?

[llmart]

3. No, you're not nuts...

Anyone with an ounce of sense has only to look at their monthly budget/bills to know that we are living with inflation right now. During his campaign Howard Dean said Greenspan should go. We can only hope that President Kerry will get rid of him once he takes office in January 2005.

[leftchick]

4. no revcarol, I think you are correct...

I see it in my grocery bills and utilities. I think they are hiding the bad news as they have with all of their bad news since day one of this miserable misadministration.