Well, they meet tomorrow. Most all observers expect the
FOMC will push up the FFR% by another 25 bp and are reserving
their curiousity for the wording of the statement.
The cyclical pressures are there -- fast rising shorter term
business loans, strong purchasing manager reports, rising
factory orders and the uptrend of capacity utilization.
Moreover, the Fed has not followed through in the injection
of liquidity that came in the wake of Katrina/Rita. The FOMC
has been very measured on the liquidity front since January.
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