big trouble at mill: usd, page-48

re: trouble at mill: gnashing of teeth "Sydney - Friday - June 23: (RWE Australian Business News) -
Concerns about US interest rates flared up overnight after Barclays Capital revised its forecast on the outcome of the FOMC meeting next week.

The global investment bank is now predicting that the Federal Reserve will raise the federal funds rate to 6 per cent this year, up
from its previous estimate of 5.5 per cent".

Comment: While the FED keeps talking about the ridiculous core inflation of some 2.5%, it is clear that they do have a keen eye on *real* price inflation, why else keep increasing rates? What a charade!

Homeowners, particularly those with ARM mortgages will await any such rate rises with fear.

Of course the elections will decide the FED's movements as well. However, any 6% rate won't touch the current 8-10% price inflation.

Then again, higher interest rates are outside the FED's control because the ECB block is ready to raise theirs, "whatever it takes". That would normally cause an outflow of funds from the US to Europe. And the US can't afford that.

Meanwhile, the price inflationary oil just moves wherever it pleases and monetary inflation is to continue.

Altogether, the loopholes are slowly being closed leaving little new initiatives to the FED.

Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks or metals/commodities.