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Fed Raises Rates a Quarter Point

Bond In Investing Savings By Freddie Mooche

prime problem. The US Fed raised its Fed Funds target rate from 1% 2004 to 5.25% by 2006. This has had an impact on long bond yields, which also peaked above 5% 2006, linked US housing market. Since then, long bonds have come off their peak slightly, which may have helped slow the rot a little, but the situation still appears shaky.

Bond Investment Toledo Toledo (AXcess News) Washington - The Federal Reserve said it raised the Fed fund rate charged banks for overnight loans a quarter point Tuesday, bringing the Central Bank's rate to 4 percent, marking the 12th consecutive rate hike and highest level in four years.

Today'a main focus expected to be the Interest rate statement, when the Fed is not expected to lower interest rates since the deflation pressures it may cause. However if analysts perspective were that no rate change will take place until 2008, well now according to equities and bonds yields status it is not unlikely for a rate cut taking place in the end of 4th quarter .

James Bond Trading Card The U.S. Central Bank said that it still had room to tighten rates in the face of booming production by factories and strong retail spending in October.

Traders are at a standstill due to the differences in opinion between the majority of investors and the Fed's themselves. Many investors believe that the US will have no choice but to cut rates even more in order to withstand the damage that the winter will bring in regards to gasoline prices. The Fed, in statements released by Mishkin, Rogers and Gross reiterated their faith in economic data, and went so far as to say that the quarter point interest rate cut could even be reversed if all went well before year's end.

Bond In Investing Stock Offsetting factory orders and strong retail figures were slumping automotive sales due mostly to high fuel costs. AXcess News had pointed out last month in its news coverage of the Commerce Department's economic figures that automotive results were most likely on the decline. It was covered in greater detail in an earlier report on the unemployment picture.

Meanwhile, Interest Rate futures show traders expect a 0.25% point rate cuts at the Fed's next two monetary policy meetings on October 31 and December 11.

Municipal Bonds Investment The combined results are giving mixed signals to the Federal Reserve's monitary policy committee, which approved the interest rate hike set earlier today by the U.S. Central bank.

rate futures show around a 90% chance that the Fed will lower its 4.75% overnight lending rate between banks by at least a 0.25% point on Wednesday.

Bond Terms Trading While growth is strong, inflation is making the Committee nervous. But that tension is partially due to higher energy prices.

Bond Debt High In Inside Economists are also watching the Group of 20 meeting in Hong Kong that's coming up, hoping that EU trade tariffs can be lowered sufficiently to satisfy those global trading partners. The US wants trade talks to come to a satisfactory conclusion before its agreement expires in 2006. Foreign trade partners in India, China and Brazil want the EU Commission to give in on agricultural tariffs before the Group's planned meeting in Hong Kong. Those member countries halted prior talks until the agricultural issues could be dealt with safifactorily.

Bond Greenville Greenville The 10-year treasury bond, a bell weather of the monetary market, closed up 0.02 points to yield 4.577% Tuesday.

Trading Stock And Bonds The Dow Jones Industrial Average closed down 33.30 points, or 0.32% to finish the trading session at 10,406.77. The Nasdaq fell 6.25 points, or 0.29% to close at 2,114.05, while the S&P 500 closed at 1,202.76, off 4.25 points, or 0.35%.

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