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FOMC Raises Federal Funds Rate 25 Basis Points to 1.25%
CNBC
| June 30, 2004
Posted on 06/30/2004 11:19:20 AM PDT by RWR8189
In the first tightening of US monetary policy since May of 2000, Alan Greenspan and the Federal Open Market Committee (FOMC) raised the Federal Funds Rate target, from its 46 year low, 25 basis points to 1.25%.
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TOPICS: Breaking News; Business/Economy; Government; News/Current Events; Politics/Elections
KEYWORDS: alangreenspan; bush43; fed; federalfunds; federalreserve; fedreserve; feds; ffr; fomc; frs; greenspan; greenspin; interest; interestrate; interestrates; monetary; monetarypolicy; ratehike; ratehikes; shorttermrates; thebusheconomy; tight; tightening; tightmoney
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To: xzins
Anything raising costs will hurt. The Fed raising its rate 0.25 will not raise costs. This increase has been priced into the equity, treasury, and bond markets for about a month and a half.
21
posted on
06/30/2004 11:28:52 AM PDT
by
Tennessean4Bush
(An optimist believes we live in the best of all possible worlds, a pessimist fears this is true.)
To: RWR8189
The Bush recovery . . . CONFIRMED !
22
posted on
06/30/2004 11:30:04 AM PDT
by
ChadGore
(Vote Bush. He's Earned It.)
To: Tennessean4Bush
I just heard that on FoxNews. The cost increase has already been factored in.
23
posted on
06/30/2004 11:30:40 AM PDT
by
xzins
(Retired Army and Supporting Bush/Cheney 2004!)
To: ChadGore
You are correct about that.
24
posted on
06/30/2004 11:30:46 AM PDT
by
Tennessean4Bush
(An optimist believes we live in the best of all possible worlds, a pessimist fears this is true.)
To: RightWhale
And away we go. Did the housing market collapse yet?Interest rates on mortgages have gone up one full point over the last six months (to about 6.5% on 30 yr. fixed), possibly in anticipation of this increase. Still selling like gangbusters, just longer marketing time and slightly slower price appreciation.
25
posted on
06/30/2004 11:32:51 AM PDT
by
JimRed
(Fight election fraud! Volunteer as a local poll watcher, challenger or district official.)
To: RWR8189
The market feared a 1/2 point rise, 1/4 point was priced in. A series of these marginal increases may occur. But the dollar won't strengthen fast enough to hurt our exports before the election. This is very favorable for the President's reelection.
26
posted on
06/30/2004 11:32:55 AM PDT
by
Faraday
To: OXENinFLA
Totally expected and priced in. Greenspan has never raised rates 50BP the first time he begins interest rate increases.
27
posted on
06/30/2004 11:33:54 AM PDT
by
gipper81
To: RightWhale
And away we go. Did the housing market collapse yet? Mortgage rates typically are priced off treasury notes I believe, which have already been rising over the last 3-4 months.
28
posted on
06/30/2004 11:35:42 AM PDT
by
Tennessean4Bush
(An optimist believes we live in the best of all possible worlds, a pessimist fears this is true.)
To: RWR8189
How long until the media starts talking about the misery index?
29
posted on
06/30/2004 11:42:46 AM PDT
by
ex 98C MI Dude
(Proud Member of the Reagan Republicans)
To: Tennessean4Bush
you are correct - the 30 year t-bill
To: RWR8189
31
posted on
06/30/2004 11:47:49 AM PDT
by
b4its2late
(John Kerry changes positions more often than a Nevada prostitute!!!)
To: RWR8189
The evidence accumulated over the intermeeting period indicates that output is continuing to expand at a solid pace and labor market conditions have improved. Although incoming inflation data are somewhat elevated, a portion of the increase in recent months appears to have been due to transitory factors.How is the media going to spin that? Eh, why spin it when you can just ignore it? =(
32
posted on
06/30/2004 12:01:33 PM PDT
by
rudypoot
(Rat line = Routes that foreign fighters use to enter Iraq.)
To: Tennessean4Bush
Yep. Up 30 points in the last 15 minutes.
33
posted on
06/30/2004 12:07:52 PM PDT
by
Blood of Tyrants
(Even if the government took all your earnings, you wouldn't be, in its eyes, a slave.)
To: OXENinFLA
I was expecting a 1/2...You and quite a bit of Wall Street. that's why the Dow jumped at 1 p.m.
To: Faraday
The market feared a 1/2 point rise, 1/4 point was priced in. A series of these marginal increases may occur. But the dollar won't strengthen fast enough to hurt our exports before the election. This is very favorable for the President's reelection. Since when does our economy hinge on exports?
However, the anticipation of raised interest rates have helped the dollar strengthen and oil prices are coming down.
To: RightWhale
In other news, Capitol One has announced its credit card rate has risen to 47.9%
To: Moonman62
However, the anticipation of raised interest rates have helped the dollar strengthen and oil prices are coming down. Expect that trend to continue. The Fed will probably gradually increase by about 2 basis points over the next two years, provided, of course, that they are right about inflation signals being modest. If inflation truly begins to kick in they will accelerate that.
37
posted on
06/30/2004 12:37:10 PM PDT
by
Tennessean4Bush
(An optimist believes we live in the best of all possible worlds, a pessimist fears this is true.)
To: RWR8189
We're doomed!
38
posted on
06/30/2004 12:49:09 PM PDT
by
jriemer
(We are a Republic not a Democracy)
To: xzins
John Kerry as a child
39
posted on
06/30/2004 12:52:01 PM PDT
by
jriemer
(We are a Republic not a Democracy)
To: Tennessean4Bush
Expect that trend to continue. The Fed will probably gradually increase by about 2 basis points over the next two years, provided, of course, that they are right about inflation signals being modest. If inflation truly begins to kick in they will accelerate that. Why would inflation kick in? Economic growth is deflationary. Greenspan is following dollar policy as he usually does. I know that isn't the official story, but I call it the way I see it.
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