FOMC Raises Fed Funds Rate to 1.50%

[tritsofme]

Fed raises key short-term rate a quarter-point. Details soon.

http://money.cnn.com/

[David Dunham]

1. This will work to slow the economy further.

[Beetwasher]

2. So What Will/Might Be the Repercussions

of raising rates while the economy is stalling?

[tritsofme]

3. Greenspan basically blamed weakness on energy prices.

Hell, even Larry Kudlow is on CNBC calling this "stagflation light".

[montanacowboy]

5. It will stall the economy even further

never, never, never try to figure out what that idiot Greenspan has up his sleeve - in 1993 he RAISED INTEREST RATES 7 TIMES, EVEN IN THE FACE OF NO INFLATION........ I suppose his banking friends need a few more bucks - this guys needs to go to rehab somewhere

[Hawkeye-X]

9. or fired.

Whatever. :eyes:

[Walt Starr]

4. Is this Alan Greenspan giving Kerry a backdoor endorsement?

Hmmm, the market is up, but I wasn't paying attention to what it was doing before the announcement.

[tritsofme]

6. Market has been up pretty high since midday.

This move was widely expected.

[West Coast Democrat]

8. The rally has lowered somewhat since the announcement....

when last I checked.

[tritsofme]

10. Now were at intraday highs

go figure. lol

[papau]

7. They don't weaken lanuage - just restated pledge for "measured pace"

"In recent months, output growth has moderated and the pace of improvement in labor market conditions has slowed..This softness likely owes importantly to the substantial rise in energy prices. The economy nevertheless appears poised to resume a stronger pace of expansion going forward.."

I wonder how the market will react to the decision to keep the "measured" pace language - rather than abandon it given the slowdown in consumer spending and hiring - indeed the decision was unanimous!

So 78,000 jobs in June and 32,000 in July, plus having Consumer spending fall 0.7 percent in June, the most since the terrorist attacks in September 2001, along with second quarter growth at only a 3 percent annual rate, and the consumer price index up 3.3 percent for the year ended in June, the fastest 12-month pace in nearly three years, did not scare them.

Oh, wait a minute - CPI up 3.3% over 12 months, up at a rate over 5% last few months - I guess that was what they were looking at!

:party:

:toast:

:-)

[gasperc]

11. Krugman said his policies make no sense to him anymore

but Greenspan got to look out for his buddies, energy costs are going through the roof, steel prices are shooting up, bank profits are probably down because of the slowdown so what better thing to do than raise interest rates.