LogFAQs > #969152291

Dan_Haren- posted...

I think fed will stay hawkish. Everyone expects 75 pts but beyond that people think there will be a slow down.

..I just don't see why there would be a slow down when inflation is raging and all things contributing to inflation are still present. The only thing looking better is real estate.

The problem is rate increases take months to work their way into the economy so they wont know if they went too far or not far enough for a long time. They definitely dont want to go too far and drive the country into a deep recession so they have more incentive to slow down and see what happens. If things are still too hot by next spring they can continue raising.