After this mornings higher then expected CPI data, it looks like the Federal Reserve may have their hands tied on lowering interest rates again when they meet March 18th.
The lowering of the Fed Funds rate has been Ben Bernanke's Golden Parachute when it comes to trying to spur economic growth and ward off recession (if we are not already in one). Now with more inflation concerns, it is a lot less likely they will be able to continue to lower the Fed Funds rate. The inflation concerns may also start to weigh on the long term rates causing them to rise.
One silver lining to this mornings data was that the Commerce Department reported a .8% increase in housing starts last month. This was below many analysts expectations but to me it sure looks a lot better then Decembers 14%+ decline.
It will be interesting to see how the Fed will react to this recent economic data. Will Uncle Ben be able to come to the rescue?
Michael Pierce, Realtor - Prudential Kansas City Realty
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment