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Strategies & Market Trends : Rande Is . . . HOME

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To: Rande Is who wrote (22966)3/30/2000 10:17:00 PM
From: Tradelite  Read Replies (2) of 57584
 
Rande, you said (in response to Jeff)<<I like your views that the Fed needs to wait for recent hikes to take effect before continuing on their hiking spree. That makes good sense. . .and your 6 month lag time for effect to occur sounds about right.>>
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Because I reside "inside the Beltway" around Washington, D.C., and have sold real estate for many years, I can report that conventional wisdom around here is that interest rates don't go up much as you get closer to the Presidential election.

On radio, in newspapers....everywhere....I'm once again hearing this "wisdom" quoted by mortgage loan gurus and political pundits. This reluctance to raise interest rates during the political season has led many to conclude that Greenie will raise 50 basis points next time around to get in his licks quicker, and then quit raising for the remainder of the year.

And, yes, it takes months for interest rate hikes to create results. However, the political impact of NOT raising during the second half of Year 2000 is considered significant, which again means that the next episode of rate increase in May could be a whopper.

Just an observer here....have no interest-rate opinion of my own.
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