Most economists believe that if the former Fed Chairman Allen Greenspan was still in charge, he would have kept moving interest rates up to battle the inflation risks, just like what he had done in November 2000.
With the soaring energy prices beginning to spill over into other areas, the price pressures are rising. Ironically, The Fed Chairman Ben Bernanke and his colleagues decided to leave the key interest rate unchanged last Tuesday. The Fed is still keeping an eye on the economic growth. They feared that one or two more rate boosts could run the risk of recession.
Whether the Fed’s decision is right or wrong, one quarter key interest rate pause will save about $1 billion credit card interest rate payments for the credit card holders each month.
Mr. Ben Bernanke, you are very kind!
Mr. Ben Bernanke is Georgian. My students said, “We Georgians are kind people.”
Well he saved a lot of people who has an ARM loan on their houses. People that have interest only loans are going to have to refinance soon and if the interest rate increases then they will find it hard to refinance. So they should all write to Mr. Bernanke.
Posted by: Ray Kirk | August 17, 2006 9:20 AM | Permalink to Comment