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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Orcastraiter who wrote (484481)	10/31/2003 12:08:47 PM
From: DuckTapeSunroof	Respond to of 769670

Yep... that's called the 'crowding-out effect'. Re: "Course there will likely be a line held on interest rates going into the 2004 election. The fed almost always keeps rates flat in an election year. But if this is done in a climate where inflation and increased pressure is put on available capital look for a spring effect to significantly raise interest rates through the later part of 2004 and 2005." >>> I agree (no serious Fed tightening until just after the election). Still, the Fed has no control over the long bond rates, which are set by the market. Bond futures already price in a 75 basis point increase by October... and seem to imply a 25 basis point bump in Fed Funds by summer.