Here are my thoughts.
Inflation is definitely rising, and with the fed using the whole numbers now instead of excluding energy and food, that seems like a possible indicator to raise rates.
I think everyone, especially the fed is concerned about the statements out of opec this week. In order to help the dollar, a raise in rates would be beneficial. I believe that helps opec, too, since their dollars would be worth more. If it causes lower oil prices, it evens out with stronger dollars.
Lower interest rates may help banks, but it takes a lot more than 25 points to lower mortgage rates, so lowering the rates at this time doesn't really help consumers or housing market, right?
So given this information, I think all markets except wall st would welcome a rate hike. At the very least, leave rates where they are. I think lowering rates at this time would be a disaster.
Am I wrong? Please - no dollar bashers! I would like clear fundamental thinking to your thoughts about the fed and rates.
Inflation is definitely rising, and with the fed using the whole numbers now instead of excluding energy and food, that seems like a possible indicator to raise rates.
I think everyone, especially the fed is concerned about the statements out of opec this week. In order to help the dollar, a raise in rates would be beneficial. I believe that helps opec, too, since their dollars would be worth more. If it causes lower oil prices, it evens out with stronger dollars.
Lower interest rates may help banks, but it takes a lot more than 25 points to lower mortgage rates, so lowering the rates at this time doesn't really help consumers or housing market, right?
So given this information, I think all markets except wall st would welcome a rate hike. At the very least, leave rates where they are. I think lowering rates at this time would be a disaster.
Am I wrong? Please - no dollar bashers! I would like clear fundamental thinking to your thoughts about the fed and rates.