(no subject)
Jun. 30th, 2005 10:03 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
which_chickEr. Okay, I thought I was done with things to say for today, but I was wrong. I'm sure you're all aware that the FOMC wrapped up one of its two-day meetings today and raised the federal funds rate 25 basis points. This was as expected -- there aren't very many surprises with the Fed because usually the statement heavily foreshadows any change in direction ahead of time so that nobody feels caught by surprise. Surprise is apparently a bad thing for investors. They would not like Lu Tze's garden.
The Fed's statement this time still has "accomodative" in it -- they still think money is pretty free-flowing and it's still got "measured" in it -- they're going to keep on with the 25 basis points thing. The next FOMC meeting is in August, so we don't have to wait too long to see if we read the entrails properly. If you're a bit confused, you can check out bankrate.com's What the Fed Said feature for a guided tour of how to read one of these things... honestly, it's fun.
Tune in next time, when we'll talk about the disturbing failure of long-term rates to rise in lockstep with the increases in the federal funds rate. Is the yield curve going to invert? What would that portend? (Hint: It's not good.)
The Fed's statement this time still has "accomodative" in it -- they still think money is pretty free-flowing and it's still got "measured" in it -- they're going to keep on with the 25 basis points thing. The next FOMC meeting is in August, so we don't have to wait too long to see if we read the entrails properly. If you're a bit confused, you can check out bankrate.com's What the Fed Said feature for a guided tour of how to read one of these things... honestly, it's fun.
Tune in next time, when we'll talk about the disturbing failure of long-term rates to rise in lockstep with the increases in the federal funds rate. Is the yield curve going to invert? What would that portend? (Hint: It's not good.)
