WASHINGTON (MarketWatch) - The Federal Reserve raised interest rates again Tuesday, saying Hurricane Katrina could fuel inflationary pressures but does not pose a persistent threat to the U.S. economy.
It doesn't look like they liked it very much! A 14 point selloff on the S&P fron the announcement LOL:
markrmau
21st-September-2005, 06:26 AM
I wonder what the implications for gold are.
Inflation up -> gold becomes a safe haven -> gold up.
Inflation up -> interest rates up -> US dollar up -> gold down.
I am beting on the second one and sold my remaining BGF yesterday.
Milk Man
21st-September-2005, 08:43 AM
I wonder what the implications for gold are.
Inflation up -> gold becomes a safe haven -> gold up.
Inflation up -> interest rates up -> US dollar up -> gold down.
I am beting on the second one and sold my remaining BGF yesterday.
I'm not so sure. You can't stop rising water with a single sandbag.
DTM
23rd-September-2005, 10:42 AM
Hi Wayne
I've been keeping a running commentry on the S&P 500 with some friends. All correspondence written were done before the events.
Enjoy.
PS Charts showed that yesterdays fall stopped on support (not on chart I'm posting) and today was a bounce off it. If this bounce holds in the next couple of days then we could expect a continue of upwards movement. If it falls below yesterdays low, then look for it to test the support line drawn in on my chart.
