This site cuts to the straight talk on current financial and economic topics. All related comments are welcome for discussion and suggestions. Please keep in mind that the views expressed in this blog represents the opinions of Sam Park and do not necessarily reflect that of Buchanan Street Partners. The posts and comments do not represent any type of investment advise, and you should conduct your own due diligence before acting on ANYTHING mentioned in this blog.
Wednesday, August 31, 2005
Fed Unlikely to be Aggressive
In hindsight of Katrina, the September fed fund futures rose slightly to 96.40. It still suggests that the Fed will likely raise rates to 3.75% in September 20th meeting, however the likelyhood of 50 bps has fallen. I doubt an aggressive move is necessary. However, those disturbing gas prices will likely impact inflation and thus, our economy.
The fed creates more problems than it solves.
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