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Friday, January 26, 2007

Fed Likely to Stay the Course Too

Following the President's example, the Fed Chairman is likely to stay the course and reaffirm its bias towards raising rates.  This means that they will hold interest rates where they are, while maintaining a finger to cover the trigger to raise interest rates.

They cite inflation as a concern as many consumer prices continue to rise, despite recent declines in the price of oil.  Separately, existing home sales continued to crumble.  They year of 2006 ended 8.4% down from the previous year.  Many economists are speculating that sales will rebound late in 2007.

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