The Federal Reserve meets tomorrow with the big announcement slated for mid-afternoon on Wednesday. The debate is on what bird emerges from that meeting. By that I mean: does the Inflation Hawk take to the skies, or does the FED remain "dove-ish".
I do not pretend to know, but I have been reading a lot about former Federal Reserve Chairman Volcker. I got to thinking about what Volcker might do if he were still at the Federal Reserve. I think expectations would be much different.
I believe Volcker would shock the world by moving that rate tomorrow. In fact, I wish Bernanke would increase a quarter point right away because it would rally the dollar and bring about an environment for energy and commodity prices to back down even if it was minimally in the beginning.
I think a lot of economists feel the last winter rate cuts were unneeded, and the market basically said that too when you look at the credit spreads. Anyways it will be interesting to see where we go from here with the US Economy after the FED speaks!!
The Mayor
- Americas Small City Mayor
- Clarissa, Minnesota, United States
- A friend of mine said: "WOW. It must be weird to be addressed as "The Honorable Nathan McLaughlin." I said it was, however, I've learned as Mayor people learn to drop "The Honorable" portion pretty fast, and insert other descriptive adjectives and verbs most of which shouldn't by typed or spoken out loud.
The City of Clarissa
