Rates, Inflation and the Dollar

December 28, 2006

This past Friday the Dollar reached a two month high against the Yen while at the same inflation data indicated very moderate inflation.  These indicators along with others indicating a slowing economy may increase the likelihood that the Federal Reserve may lower rates to keep the economy moving ahead.  in recent months the Fed has kept the rate the same indicating a change in trend from the earlier 17 consecutive rate increases.  Though the rates are still low, the housing market has slowed on fears of rising rates. 


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