Posted on 02/02/2005 11:42:34 AM PST by presidio9
The Federal Reserve raised its short-term interest rate target by a quarter of a percentage point for the sixth time, and signaled little change in its plan to continue raising rates gradually in the months ahead.
The rate change, which was expected, brings the target for the federal-funds rate, charged on overnight loans between banks, to 2.5% from 2.25%. It was 1% last June.
The statement accompanying the rate change was almost identical to that issued after its last meeting on Dec. 14. Economic growth is "moderate," the jobs market is improving "gradually," and inflation is "well contained." It said it could continue to raise rates at a "measured" pace, and that risks to both economic growth and price stability were "roughly equal."
The move was unanimous among the 12 voting members of the 19-member Federal Open Market Committee, the central bank's decision making body.
The lack of change to the Fed's message reflects the fact that the economy and inflation have largely progressed as expected for the last few months.
(Excerpt) Read more at online.wsj.com ...
Funny, I didn't hear you defend the Fed once in that entire rant. :)
Damn it! Why can't we be more European?
Today Germany announces unemployment at 12.5% http://www.freerepublic.com/focus/f-news/1334421/posts
I thought the Dems like Hillary say the economy is about to collapse. here's a question, if higher rates are a monetary attempt to keep growth in check, why would the fed raise rates if the economy is collapsing like Hillary says?
My bad 12.1%
Inflation need be neither instaneous nor homgenous; your home value is still going to increase at or above that rate of inflation.
Inflation, by definition, means that assets cost more. That applies to your biggest asset, your house, as well.
Nor is home ownership "home indebtedness." Unless you paid too much originally...and even then it is merely a matter of time before your appreciating asset overtakes your depreciating debt.
Remember: inflation reduces your debt, too.
Economic growth is deflationary. The Fed is raising rates to support the dollar.
Keep an eye on the yield curve.
I am just glad that we locked in our 5.75% this week. Dang that was close!
Egads! My credit interest rate will be increasing also.
It won't rain in the bank, but any dripping inside the house could be a sign that the roof is leaking.
You're right about inflating home prices.
But-so you're saying only someone with $100,000 in the bank should own a house?? If people SAVED to pay 100% cash for a home, about 84 people nationwide would own all of the houses across the country.
No, I'm distinguishing between home ownership and home indebtness. "Ownership" is a bit of a joke anyway since most people only have color of title not an actual title to their homes.
There is a reasonable balance here. Credit, when used wisely, can be a great thing, both individually, and for the economy. However, giving credit cards to high school girls with no job and a love for shopping at the Gap is just stupid and I fear what may happen in the future as a result.
What is your opinion of real estate/property taxes?
What do you consider ownership of a home?
I'm genuinely curious.
No, inflation is an increase in the money supply. The nonlinear effect on prices depends on the past history of the system.
Nobody would argue that owned your toothbrush if you had to pay the government $1 every year to keep them from taking it away. This is called renting.
In order to own a home in America you are generally required to pay arbitrary tribute to the local political authority. Usually these funds are used for the indoctrination of children.
Heh. Nicely done.
If everyone heard it worded that way on a daily basis instead of "property taxes for education" people would suddenly become a lot more conservative, methinks.
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