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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (15052)	11/7/2004 11:19:14 PM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

Fed Expected to Stay the Course for Now By EDMUND L. ANDREWS Published: November 8, 2004 ASHINGTON, Nov. 7 - If there is a good rule of thumb about the Federal Reserve, it is this: A startling economic report is not enough to sway policy. When the Labor Department reported on Friday that employment surged by 337,000 jobs in October, far faster than most forecasters had expected, market speculators immediately raised their bets that the Federal Reserve would not pause in its course of gradually raising interest rates. Advertisement Fed officials have left no doubt that they will raise short-term rates on Wednesday by a quarter point, to 2 percent, but they are still keeping their options open for December and next year. By most measures, the Federal Reserve is less than halfway through a course of gradually "normalizing" short-term interest rates from the rock-bottom level of 1 percent of earlier this year. Even if the central bank announces another rate increase on Wednesday, as most analysts expect, "real" short-term rates will still be slightly below zero after subtracting the effect of inflation. ... nytimes.com