The FED increase the FF rate on 05/10/06 to 5.25% with Risk Assessment of “Inflation Risk” versus a Risk Assessment of “Balanced” when they increased it to 5.00% on 05/10/06. Since that time, no change but each time the Risk Assessment is noted as “Inflation Risk” (8 meetings).
So, why would the FED decrease the FF rate now? Inflation has not disappears - the housing market is inflated, big time - food costs are increasing along with tons of other items. No, the FED must not move the FF rate up or down at this time. If it does, it’s politics and the FED does not play politics, I hope.
Correction to above - increase to 5.25% was on 06/29/06 with not change since that date.