This week the FED will utter two or three sentences upon which the entire financial world will turn...
Either up or down...depending...
Will the words "accomedation" and "measured pace" disappear from the FED statement...?
Well I say: WHAT DIFFERENCE DOES IT MAKE...
The FED is stuck between Iraq and a hard place...with oil high and natural gas near records... The housing bubble is still in play...albeit sputtering just a bit.
And the TRADE and BUDGET DEFICITS are not even being discussed as the Kongress passes even more tax cuts for the rich...
Clearly, not matter how the FED mangles the language this week RATES ARE STILL GOING UP... Probably for most of 2006, or until the 10 year bond hits circa, 6%...it's "historic norm."
If any economy "needed" higher rates its the US economy right now. And however the FED want's to "phrase it" is just fine with me...
