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Wells Fargo & Company Message Board

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  • nano_klumps nano_klumps Mar 16, 2007 6:43 PM Flag

    Interest Rates Heading Higher....

    Federal Reserve policymakers meet next Tuesday and Wednesday with the wide expectation they will leave interest rates unchanged even though the economy has slowed significantly under the impact of a steep slump in housing and troubles in autos and other parts of manufacturing.

    While the Fed would normally be expected to ride to the rescue of a faltering economy by cutting rates, the stubbornly high inflation readings are expected to boost the arguments of Fed officials that

    the biggest threat to the economy remains the risk of higher inflation, not weaker growth

    The overall CPI reading was slightly bigger than expected

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