Tuesday, December 13, 2005

Feds expected to boost rates by a quarter-point

Fox News

WASHINGTON — The Federal Reserve is expected to hike interest rates another quarter point today. But after 18 months in which the Fed has been pushing rates higher to keep inflation under control, the central bank appears to be getting close to the end of its rate increase campaign.

However, there is a divergence of opinion among economists on just when the rate increases will cease. One group thinks the Fed will stop after two more rate increases, while analysts who are more worried about inflation think the central bank could raise rates perhaps four more times.

"The Fed is looking at an economy right now that is growing strongly with upside risks to inflation," said Lyle Gramley, a former Fed board member and currently senior economic adviser at Schwab Washington Research Group, a financial advisory firm.

"... is growing strongly with upside risks inflation"

How often have we heard these words uttered from Alan Greenspan? "The economy is strongly recovering"

Tell that to General Motors and Ford... Kodak... Sony... and all the other companies that had to do massive layoffs and/or went out of business because they could not afford to keep operating in the consumer could not afford to keep buying products.

The federal government treats the interest rates like it is a totally separate entity from everything else. Every time that the interest rate goes up, it causes a cascading effect in the economy.

  • state and local governments suffer because of increased on operating expenses and lower tax base thus forcing them to raise taxes and fees to compensate

  • overall operating expenses on businesses are increased, forcing businesses to reduce operating costs and lay off employees as well increasing the price of goods and services

  • the price of fuel increases make it more expensive to get goods to market and the cost is passed on to the consumer

  • resulting in massive layoffs, businesses closing

  • consumers being tighter on the dollar purchase less which forces more layoffs and business closures

  • state and local governments again feeling the pinch from lack of revenue, raise taxes and fees again to compensate (citing the example when Oregon was the top in unemployment in the nation)


  • So could somebody please explain to me how making things more expensive is actually a good thing.

    4 Comments:

    Blogger ninest123 Ninest said...

    ninest123 09.19
    michael kors outlet, prada handbags, louis vuitton, replica watches, gucci outlet, louis vuitton, tiffany and co, prada outlet, michael kors outlet, michael kors outlet, jordan shoes, longchamp outlet, burberry, louboutin shoes, ray ban sunglasses, christian louboutin outlet, ugg boots, louis vuitton, polo ralph lauren outlet, uggs on sale, ugg boots, ugg boots, louis vuitton outlet, oakley sunglasses, nike air max, replica watches, tory burch outlet, michael kors outlet, ray ban sunglasses, longchamp, tiffany jewelry, oakley sunglasses, louis vuitton outlet, burberry outlet online, nike free, oakley sunglasses, longchamp outlet, nike air max, michael kors outlet, louboutin outlet, polo ralph lauren outlet, ugg boots, michael kors, nike outlet, louboutin

    11:43 PM  
    Blogger ninest123 Ninest said...

    michael kors, coach outlet, air force, nike air max, ray ban pas cher, longchamp pas cher, michael kors, hermes, michael kors, true religion outlet, lacoste pas cher, kate spade outlet, timberland, north face, nike blazer, coach factory outlet, vanessa bruno, coach outlet, air jordan pas cher, air max, north face, oakley pas cher, new balance pas cher, nike roshe run, lululemon, ralph lauren pas cher, burberry, hogan, true religion jeans, hollister pas cher, coach purses, converse pas cher, kate spade handbags, nike free, true religion jeans, sac longchamp, vans pas cher, chanel handbags, hollister, true religion jeans, tn pas cher, ray ban uk, michael kors, sac guess, louboutin pas cher

    11:44 PM  
    Blogger ninest123 Ninest said...

    ralph lauren uk, north face outlet, abercrombie and fitch, babyliss, giuseppe zanotti, asics running shoes, nike air max, longchamp, jimmy choo shoes, wedding dresses, nike air max, nike roshe, mac cosmetics, ferragamo shoes, mcm handbags, p90x workout, north face outlet, reebok shoes, hollister, soccer jerseys, mulberry, ghd, beats by dre, soccer shoes, insanity workout, birkin bag, nike trainers, nfl jerseys, bottega veneta, hollister, nike huarache, vans shoes, baseball bats, herve leger, lululemon, mont blanc, abercrombie and fitch, instyler, chi flat iron, nike free run uk, nike roshe, new balance, celine handbags, nike air max, valentino shoes

    11:46 PM  
    Blogger ninest123 Ninest said...

    karen millen, pandora jewelry, iphone 6 cases, swarovski crystal, louis vuitton, hollister, toms shoes, oakley, pandora jewelry, coach outlet, louis vuitton, louis vuitton, ray ban, thomas sabo, marc jacobs, swarovski, michael kors outlet online, louboutin, bottes ugg, supra shoes, converse outlet, vans, sac louis vuitton pas cher, converse, doke gabbana outlet, michael kors outlet, wedding dresses, replica watches, louis vuitton, lancel, timberland boots, hollister, pandora charms, ugg boots uk, ugg,ugg australia,ugg italia, michael kors handbags, ugg pas cher, pandora charms, montre pas cher, juicy couture outlet, gucci, juicy couture outlet, nike air max, ralph lauren, links of london, ugg,uggs,uggs canada
    ninest123 09.19

    11:48 PM  

    Post a Comment

    Links to this post:

    Create a Link

    << Home