1:08PM Fed's Santomero predicts 2004 'will be a good year' by Greg Robb
WASHINGTON (CBS.MW) -- The economy has begun to gain momentum and this should carry over into next year, said Anthony Santomero, the president of the Philadelphia Federal Reserve Bank. "I expect economic growth to continue at a healthy pace as we move into the new year," Santomero said in a speech to the Philadelphia Estate Planning Council. "From an economic perspective, I believe 2004 will be a good year," he said. Growth in GDP and employment will persist, "though it will take some time before the economy reaches full potential output," he said. Santomero reiterated a comment made last Friday that he does not think any Fed rate hike is necessary "in the near future." But he stressed that the current low level of interest rates "cannot be maintained indefinitely."
And I say... Don't be caught in bondage with interest rates destined to begin rising early next year!!! Especally Collateralized Mortgage Obligations (CMO's)!!!