Interest Rates

[bhplv1]

The question isn't "if" the FED will raise the rates, instead it's when. What do you guys think? I think if there is no major change in the economy due to a terrorist attack, or another scandal, the FED will raise the rates .25 point at the next meeting this summer. Thoughts?

[JoJoDaMan]

General view is the Fed will raise rates this year. And yea it may be this summer. I do not think it's time to raise rates. Oil prices are to high, still too many folks out of work, prices on food staples are on the rise. The Fed only hints at doing something about the rates to see what the market and public reaction will be. I think the jury is still out on an interest rate increase. The world economy needs to grow stronger, especially in the USA, before the rates should be increased.

[thewalrus]

General view is the Fed will raise rates this year. And yea it may be this summer. I do not think it's time to raise rates. Oil prices are to high, still too many folks out of work, prices on food staples are on the rise. The Fed only hints at doing something about the rates to see what the market and public reaction will be. I think the jury is still out on an interest rate increase. The world economy needs to grow stronger, especially in the USA, before the rates should be increased.

Agree, however maybe a interest rate increase will help the crazy real estate prices. :greddy:

[BlitzkriegMS]

Oil/gas prices likely will not come down. They are where they should be given the lack of historical increase. Those prices aren't necessarily tied to anything in our economy anyways.

Interest rates..yes they have nowhere to go but up. Buddies at banks say get the refi while you can!

[mookie]

I'd say at least .5 by the end of the year.

m

[K_CORVUS]

Interest rates have nowhere to go but up. There are other factors but the cost of oil will drive up inflation. There are so many industries dependant on engery for production, trasportation...so on that they will be forced to increase prices to maintain their earnings so thier stock prices won't fall. The increased prices will trickle down and we will see interest rates go up at the first sigh. Alan Greenspan has already givin his warning. That being said nothing to do with the markets is set in stone, but that's my 2 cents.

[alleon86]

Hkbc

[iceman21]

Hkbc

Come again?

If I had to throw a dart at the dart board, I would say half a point increase by the end of the year.

[JoJoDaMan]

Since last I replied, there is still much talk of interest rate up tick. I now think the rate will increase but most likely not more then .5 percent. Being an election year, the Chinese buying oil like it's going out of style which forces the price of a barrel of crude up to an all time high of over $40.00, terrorists activities keeping everyone on edge including the stock market, I doubt the Central Bank will go more then that. I do think if Bush had more capable people around him the economy would not be as bad as it is........ Alas, all we can do is wait and see.

[gman2004]

No more than .5

[huskerfan10]

I would expect another .25 at there august meeting. But you never know some of the recent data on the economy has not been so promising.