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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: elmatador who wrote (8523)8/23/2006 7:46:37 PM
From: Arran Yuan  Read Replies (1) | Respond to of 220163
 
<Inflation started being tamed. No need for further increase in interest rates in the US.>
Hmm, I sincerely wish so! Housing is cooling in ownership, but heating up in renting. Isn't fed using renting to calculate housing related core CPI?

Then, again, what about other daily items, especially those imported? Vegies have been doubling their prices in China (Beijing), wages are raging nationwide there, too. Will these inflation will be filtered into US imported items from China? If so, when? This is about the superficial aspects of inflation.

Another thing is a no rate hike here would not deter others to do so. Japan just changed its 0 policy lately, and others are raising, too. Now, US$ exchange rates comes in the scene. How this coming will impact US debts' trading, hence yield? I suspect BBB is as confused as many others. Could he be forced to hike some time in '07? Perhaps a cut in the cards before November election if cooling in the near future accelerates?

Well, volatility is great for money changers and seasoned traders, I guess. Good time to play straddles.