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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Micawber who wrote (22031)	7/9/2004 10:48:16 AM
From: GraceZ	Read Replies (2) \| Respond to of 306849

Long rates are a function of inflation expectations. Raising short rates moderates those expectations. The Fed raises short rates and then people think that the Fed is being more vigilant about inflation. Problem is that they are behind the curve and it looks like they are determined to stay behind which means we're in danger of entering another period like the 70s of continual incrementally rising inflation rates. That is if we aren't already in one.