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

To: Les H who wrote (25159)	11/11/2004 9:16:31 PM
From: Les H	Read Replies (1) \| Respond to of 306849

High Oil Prices Deflationary December Fed Hike Largely Depends on Oil The Federal Reserve is finally coming to terms with the notion that oil prices near $50 per barrel carry more of a negative impact on consumer demand than a positive impact on inflation. Thus, we see oil prices as the key determinant of the Fed’s interest rate decision in December. If oil prices revert to the low $40s for the rest of this month and into the first two weeks of December, then it would present an opportunity for a December rate hike on the rationale that lower oil prices are putting less restraint on inflation and growth. If on the other hand, prices remain at least in their high $40s, then the contractionary risk on growth remains apparent, thereby precluding the need for a December tightening. This would signal the end of the Fed’s “accomodation removal” phase of the tightening and consequently pave the way for a run up in US stocks to wards the 1.200 level in the S&P500. forexnews.com There's the real world, and there's spin...