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Strategies & Market Trends : ahhaha's ahs

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To: ahhaha who wrote (10286)11/23/2007 4:31:20 PM
From: rich evansRead Replies (1) of 24758
 
How can the Fed control the 10 year Treas bond rate?

It is under 4% and headed lower it seems. This would indicate that the FF rate is too high as the market for short 3 month paper is much lower then the FF rate. I think the Fed must follow the market which is lowering FF rate even though you think the FED should raise. Dollar value does not seem to be controlled by FF rate. When FF rate was very low in the 1% range dollar was much stronger. Supply of dollars seems to exceed the demand these days but the decline in dollar has been gradual. The Feds projections for inflation and GNP growth for 2008 and 2009 are interesting to me. They say inflation stay at 2% or so. This must mean they think commodity/oil prices have reached an end to increases- a Patinkin equilibrium? So only monetary inflation matters which they plan to keep in check.

Rich
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