Tomorrow (May 10, 2006), the Fed will have another meeting, and it is widely expected that it will be announced a .25% interest rate rise, and a pause in the rises. The Fed rate would now stand at 5.00%, up from a low of 1.00% in 2001/2.
As I had stated previously, this pause is just a pause... it is extremely likely that the Fed will resume increases later in the year in order to keep up the uphill battle against inflation.
On a side note, even though the Fed raised rates by 4 full percentage points in the last 4 years, the dollar has been down against about everything: other currencies, gold, commodities, real estate. Pausing the rise will certainly not counter this trend.
Update on Canadian dollar: I had predicted in March that we would end the year with a loonie worth 1.12$ Canadian. I was too conservative.... it touched 1.09$ recently, and it now down slightly at 1.11$. I will have to revise my prediction, like all good analysts... LOL
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