Will the Fed Raise Interest Rates?

May 3, 2005

Comments

So far the answer appears to be yes, with the main reason being the specter of inflation.

Opinion was virtually unanimous that the Fed’s bellwether federal funds rate will rise another quarter percentage point to 3%. Most analysts expect the Fed to stick to a policy of “measured” rate rises to keep inflation from gaining a foothold, though some policymakers have signaled they think the language should be changed to make it restrictive.

2 responses to “Will the Fed Raise Interest Rates?”

Red

May 3, 2005 at 1:06 pm

Yes they will raise but where is this specter of inflation Greenspan referes to? He is 6 months behind. I am beginning to think he does need to step down. Hey Allen, lets keep raising those rates so the economy stalls.
bryan

May 3, 2005 at 4:37 pm

And all the consumers with major credit cards send a big “thank you” to the fed for giving it to us in the shorts again.