Thursday, January 29, 2004

Goldman's Fed Prediction
Goldman has predicted that the Fed won't raise rates till 2005. Makes sense to me. Greenspan raised rates 6 times right before the 2000 election, cut rates 13 times after the President was elected, and would certainly never raise rates going into another Bush election. A great story that the press completely fell down on is how politicized Greenspan's Fed has been of late. However, on the other hand, there is an off chance that Greenspan, a libertarian and long-time friend of O'Neill, will actually decide to fuck Bush before the election by raising rates in August.

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