Will the Feds Raise or Not?

[IIC]

Will the Feds Raise or Not???

I'm a little late with this poll...Hurry up...you've only got 55 mins...IIC

[Rob]

I say no, but then he will say something to the effect that there is a very real possibility for raising again if inflation continues to run as it has. Listen for words like "caution" and "tempered" in the news reports following.

[IIC]

Text Of Federal Reserve's Decision On Interest Rates

NEW YORK (Dow Jones)--The following is the text of the Federal Reserve's decision on interest rates released Tuesday, Aug. 8:
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent.

Economic growth has moderated 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, and the high levels of resource utilization and of the prices of energy and other commodities have the potential to sustain inflation pressures. However, inflation pressures seem likely to moderate over time, reflecting contained inflation expectations and the cumulative effects of monetary policy actions and other factors restraining aggregate demand.

Nonetheless, 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.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Susan S. Bies; Jack Guynn; Donald L. Kohn; Randall S. Kroszner; Sandra Pianalto; Kevin M. Warsh; and Janet L. Yellen. Voting against was Jeffrey M. Lacker, who preferred an increase of 25 basis points in the federal funds rate target at this meeting.

[jiesen]

and this was obviously widely anticipated, as the typical "sell the news" market begins to nosedive...

just imagine the carnage had they surprised the market with another hike!

[IIC]

Hey...no more voting...The poll was 3 to 3 when the announcement was made...Hello Inflation!!!

[Rob]

Does this mean it's time to buy the home builders again?