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

To: sea_biscuit who wrote (48836)	3/28/2006 8:23:21 PM
From: booyaka	Read Replies (1) \| Respond to of 116555

Is there any particular reason why the Fed has to keep raising rates? Today's statement said they may have to tighten further to keep upside and downside risks in balance. They consider inflation to be contained at the moment, but they are keeping their options open in case the situation changes.

To: sea_biscuit who wrote (48836)	3/28/2006 9:03:58 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 116555

They have to keep hiking rates both to contain inflation and support the dollar. But their biggest fear probably is the rampant near crack up boom type speculation going in in so many markets today. The longer this runs out of control the worse the inevitable bust.

To: sea_biscuit who wrote (48836)	3/28/2006 11:18:07 PM
From: mishedlo	Respond to of 116555

Is there any particular reason why the Fed has to keep raising rates? They say that inflation is "contained", so why are they raising rates at every meeting? Are they afraid of a dollar decline? Or something else? They are scared shitless of the credit bubble and are acting to stop it (too late of course) Mish