From the Federal Reserve:
The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 5-1/4 percent.
Recent indicators suggest that economic growth is moderating from its quite strong pace earlier this year, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices.
Readings on core inflation have been elevated in recent months. Ongoing productivity gains have held down the rise in unit labor costs, and inflation expectations remain contained. However, the high levels of resource utilization and of the prices of energy and other commodities have the potential to sustain inflation pressures.
Although the moderation in the growth of aggregate demand should help to limit inflation pressures over time, the Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information. In any event, the Committee will respond to changes in economic prospects as needed to support the attainment of its objectives.
More to come
Dow is still up 130 pts??
we’re going to 6%. just watch.
Rally on the change in wording? Dollar falling?
Rally on the change in wording?
The “further policy firming may be necessary” wording removed. Maybe the market thinks the Fed is done.
Citibank 5% no min. xfer time
ADHD all the way
At least this crack-addicted rally is making my firm’s 2Q06 look MUCH better. Gracias.
True, the stock markets are looking for ANY positive news.
Even if they have to stick their fingers in their ears and hum.
Hmmm, down tomorrow, maybe due to some profit taking?
looks like Wall Street was expecting a half percent hike rather than the quarter we got….. it’ll be low volume tomorrow going into monday…
The stock market sounds like it’s gone bonkers. Aren’t they supposed to be the smart ones?
Well todays ‘tightening’ basically flies in the face of what the fed is attempting (very unsuccessfully at that) to do.
The market rose by 200 points & 10 year fell below the fed funds.
All this will keep the consumer spending party going in full force.
Looks like the fed will need to increase to over 8% to slow down the economy and housing sales at all.
By my calculations given the strong unemployment claims number & the weekly Chain Store Sales reports –
Stores had yet another blowout, barnburning month (even with gasoline above $3.00), and unemployment likely fell below 4.5% with Payroll jobs over 300K.
On a side note, I called a major real estate agency in Jersey City Heights and found out there is NOTHING available for less than $400,000 (condos), & the cheapest single family is $650,000.
The cheapest one bedroom condo in JC Heights is $475,000 with another $350 in maintenance & another $250 in monthly taxes. Great deal Huh!!!
I don’t get why they didn’t go to .50.
And it kind of pisses me off that they didn’t.