Posted on 12/10/2003 10:25:13 PM PST by JohnHuang2
At this week's monetary-policy meeting, the Federal Reserve took the first baby step toward making small interest-rate increases next year. The central back acknowledged that deflation is no longer a problem and that the economy is growing briskly. Wisely, the Fed appears to be taking account of forward-looking market indicators, such as rising gold, higher raw-material commodity prices and a declining dollar, all of which signal that the obstacle of deflationary price declines has been removed and that world economic recovery has begun. Next year, the Fed will slowly narrow the 1 percentage point gap between the fed funds policy rate and the economy's natural rate.
(Excerpt) Read more at townhall.com ...
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