Fed's Rate Hikes Expected to Continue This Week and Most of Next Year(to4%

[papau]

http://ap.tbo.com/ap/breaking/MGBN75VOD1E.html

Fed's Rate Hikes Expected to Continue This Week and Most of Next Year
By Martin Crutsinger
The Associated Press


WASHINGTON (AP) - The Federal Reserve is expected to nudge interest rates up for a fourth time this year on Wednesday, acting on the belief that the economy has finally emerged from an extended "soft patch."

And the November rate increase is likely to be followed by another quarter-point move at the Fed's final meeting of the year on Dec. 14 with more rate hikes to come in 2005, analysts say.

That represents a change in thinking from just a week ago, when many were predicting that the Fed would raise rates this month but then would pause to assess the effect on the economy of its credit-tightening campaign.

What changed the forecast was the far better-than-expected employment report for October that showed the nation's businesses adding 337,000 workers last month, the biggest one-month gain in seven months and more than double what had been forecast. <snip>




Federal Reserve rate-setting committee: http://www.federalreserve.gov/fomc/

A

[Tandalayo_Scheisskopf]

1. Oh man.

If this country was a person, they would be taking Seroquel.

[papau]

2. LOL :-)

SIGH ...

:-)

[lcooksey]

3. Ouch

All those folks who got adjustable mortgages are going to be in a world of hurt. I hope they remember that and go vote in 2006 and 2008.

[Yavin4]

4. It's Appropriate That The Acronym for Adjustable Rate Mortgages

is A.R.M. because it's going to cost people an A.R.M. and a leg to pay their mortgages.

[West Coast Democrat]

5. Good! My savings accounts will be earning some money!