Federal Reserve Tightens Again Due to Inflation; Expected

By: Lance Winslow
Submitted: 2007-01-17 16:23:56
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The Federal Reserve has once again stair stepped its tightening of the interest rates and will do it a couple of more times or more depending on the expectation of inflation and other factors and we should expect this. Some considered that the Federal Reserve might tighten 50 basis points and they very well could have, yet there is no sense in sticker shocking the stock market.

The stock market had huge gains of 200 points and this appears to be a sign that it is indeed coming off its re-correction lows and headed back up again. Yet there are still issues to be concerned with. The Treasury Secretary was also confirmed by Congress and things look as if they are under control with the Fed and the gambling casino we call the stock market.

There are still some issues to be addressed however such as increasing oil prices during the 2006 Atlantic Hurricane Season, flooded out refineries in Pennsylvania and the escalation of an Iranian conflict over the manufacturing of nuclear weapons. There are also concerns with housing as there is some debate as too the seriousness and the industry figures being purported in the sector.

All in all things are not so bad on the economic home front. Now all we need is to get those podium pushers to stop spending like a bunch of shop until you drop Prozac induced Christmas Season credit card holders with no limits folks. Consider all this in 2006.

Lance Winslow

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