July 16, 2004

MORE TIGHTENING AHEAD says FED Governor Susan Schmidt Bies: ""You cannot keep short-term interest rates below the rate of inflation -- it's too accommodative. We've got to get to what we call a neutral level .. I'm confident that the pace we've talked about moving is appropriate .. Inflation will continue to grow as the economy expands."

Let's see. Does that mean the FED is planning to give us both higher interest rates AND higher inflation? Posted by Greg Ransom | TrackBack