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Originally Posted by yardie
I think we will see 6%, but it all depends on the inflation data. The FED have made fighting inflation their raison d'etre.
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Really? 6% so you agree with the big boys? What are the grounds for this? Just inflation fighting?
I recently read a report published that basically said every new FED chairman that comes along tightens too much in his first few appearances in responce to inflation fighting. Essentially, they take the helm and then over do it.
In an article I wrote ~ 2 weeks ago on my blog, I was talking about how global higher interest rates hurts the markets (well expect forex ) In fact, the world markets lost over 2 trillion in value in a very short time!
Just look at the recent drop in gold! Investors had to sell gold in order to cover their losses in the stock markets. And gold was supposed to be a safe haven.
My point is the markets everywhere and especially in the US are getting increasingly scared of more interest rates rises. The FED has the old dillema, how to curm inflation qithout throwing the global economy in a recession.
Anyway thanks for your comments Yardie. I'm suprised that noone else gave their oppinion. Maybe I should have posted this in a different section....
Anyway good trading to all
