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My personal musings about anything that gets on my radar screen--heavily dominated by politics.

2006-05-10

Clear As Mud

The Federal Reserve today raised a key interest rate to the highest level in more than five years but signaled that it may pause to assess the impact of its string of rate hikes.

What does this really mean for the economy? Well, nobody really knows. The statement that accompanied the rate hike was about as ambiguous as it could possibly be--"we'll decide the direction of further actions based on future data."

And as a result the Dow Jones struggled to gain a tiny little bit, closing at its third-highest level ever. And this in the face of two straight years of interest rate hikes, insane increases in the cost of fuel, and "ballooning" federal deficits.

Some analysts are talking Dow at 13,000; some are suddenly bearish.

I suspect that only one thing is easily predictable: when the Dow hits a new all-time high (I'm going out on a limb and saying Monday), the story will be buried in the c-block of the evening MSM newscast, getting a grand total of 12 seconds of coverage on the way to commercial break.
Posted by: Michael / 5/10/2006 11:03:00 PM

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