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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: andiron who wrote (63348)	6/11/2006 2:07:19 PM
From: UncleBigs	Read Replies (2) \| Respond to of 110194

I think the Fed is done at 5.25% if they even get that high. This latest talk is a strategy to gain a reputation as an inflation fighter. The soft talk was creating a crack-up boom. Bernanke is obviously not an inflation fighter and he doesn't want to be blamed for busting the housing bubble (although it's already too late for that). We'll soon begin to hear him emphasize that inflation is a lagging indicator and the combined rate hikes to date are enough to contain long term inflation expectations. He'll really be in a box if crack-up boom speculation takes off again and the dollar falls on weak economic data. I expect the official government numbers on everything will be cooked more than ever to give the appearance of a strong economy with low inflation.