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Nesgroup address: misc.invest.real-estate - Date & Time for the message: Fri, 18 Mar 2005 21:35:26 GMT /

Author of the message: "flinrius"

Title of the message:
Fed may get more aggressive

Text of the message:
Fed may get more aggressive
With inflation fears growing, central bank may pull its pledge to raise
rates at a 'measured' pace.
March 17, 2005: 5:15 PM EST
By Paul R. La Monica, CNN/Money senior writer
NEW YORK (CNN/Money) - So long, measured. It was nice knowing you.
When Alan Greenspan and the rest of the Federal Reserve's Open Market
Committee meet on March 22, a rate hike is all but guaranteed. According to
the Chicago Board of Trade's federal funds future contract, traders are
pricing in a 100 percent chance of an increase in short-term rates.
But many Fed watchers think that the most important thing to look out for is
not what the Fed does, but what it says in its policy statement.
Since May, the Fed has indicated that it would likely raise rates at a
"measured" pace. But there's a growing sense among market observers that the
Fed will drop that language. Opinions on what exactly that would mean,



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