[emersonbiggins]

Is anyone convinced?

$this->bbcode_second_pass_quote('', ' ')CNNMoney.com
Fed leaves rates unchanged, ending 9-months of rate cuts
Wednesday June 25, 2:11 pm ET
By Chris Isidore, CNNMoney.com senior writer

The Federal Reserve left its key short-term interest rate unchanged Wednesday at 2%, marking the first time it held rates steady in the past nine months.

The widely expected move comes at a time when many economists are focusing more on inflation than on an economic slowdown. Some are predicting that the Fed will need to soon raise interest rates in order to keep rising prices in check.

In its statement, the Fed cited increasing inflation pressures caused by rising oil and other commodity prices. The central bank also said that the rate cuts it has already made should help lead to improved economic growth ahead.
...

[mattduke]

It's too late now. Even if they raised from 2% to 8% today we would still get hyperinflation. We are past the point of no return.

[FoxV]

$this->bbcode_second_pass_quote('mattduke', 'I')t's too late now. Even if they raised from 2% to 8% today we would still get hyperinflation. We are past the point of no return.

[emersonbiggins]

Anyone feel an emergency cut coming over the weekend, esp. if we get another down day tomorrow?

I think a 100bp cut (down to 1%) might do for another dead cat bounce, inflation be damned.

[Byron100]

$this->bbcode_second_pass_quote('emersonbiggins', 'A')nyone feel an emergency cut coming over the weekend, esp. if we get another down day tomorrow?

I think a 100bp cut (down to 1%) might do for another dead cat bounce, inflation be damned.

[biofuel13]

$this->bbcode_second_pass_quote('emersonbiggins', 'A')nyone feel an emergency cut coming over the weekend, esp. if we get another down day tomorrow?

I think a 100bp cut (down to 1%) might do for another dead cat bounce, inflation be damned.

[Kingcoal]

I have a funny feeling that the emergency squad will be meeting this weekend. Things look bad, it's a perfect storm - I've never seen a more perfect recipe for disaster in my life and at the eye of the storm is oil, or lack thereof. See, what this generation doesn't understand is that oil isn't going to prop us up this time. If it were the good old days with cheap oil, the credit crunch, trillions in bad debt, over done debt monetization would all be just another shell game, a temporary inconvenience.

[emersonbiggins]

$this->bbcode_second_pass_quote('biofuel13', '')$this->bbcode_second_pass_quote('emersonbiggins', 'A')nyone feel an emergency cut coming over the weekend, esp. if we get another down day tomorrow?

I think a 100bp cut (down to 1%) might do for another dead cat bounce, inflation be damned.

[DantesPeak]

The 2% interest rate talk distracts from the most important issue: the rapid debasement of the US dollar by the Fed.

The dollar has moved from mostly being backed by US treasury bills to now being 60% backed by loans to failing banks and brokers, and other derivatives - mostly mortgage related.

I give hyperinflation a good chance of taking off this year. You say wages won't grow that fast? True but that won't stop rapid price increases. Dow raised the price of everything plastic 45% already. It won't be much longer to the consumer is hit with a killer wave of inflation.

I predict tax cuts, rebates, etc., - this year - by the government to make up for lost spending power.

[Jack]

$this->bbcode_second_pass_quote('DantesPeak', 'I') predict tax cuts, rebates, etc., - this year - by the government to make up for lost spending power.

[FoxV]

well the worm is definitely turning and money is flooding back into gold miners like there's no tomorrow (perhaps there is).

my gold miners ETF (XGD.TO) was up 4% yesterday, and another 4% today already. Although I'm suspicious of short covering. Monday will probably be a sizable drop.

Also in the Worm turning category, the Canadian TSX is now 5% above its previous all time high (August). More signs of money coming into commodities

[Tyler_JC]

Current inflation, using the Fed's own data, is well over 4% and the key rate is only 2%?!?!

The Fed's current monetary policy is looser than Charles Manson's grip on reality!

If they don't raise rates at the next meeting, we are doomed to repeat the misery of the 1970s.

The only question is how long are the Chinese and Saudis going to continue loaning the Federal Government money at 4%?

I think we could see dramatically higher long term interest rates within the next year.

[Kingcoal]

Another funny observation is how the market reacts to a hold in rate as if it were an increase.

[heroineworshipper]

At least this time they pushed out the inflation moderation sentence to December instead of saying it would happen next month like they normally do. Your government now has slightly more imagination than a venture capitalist.