>Nevertheless, many economists think that the Fed is tightening the
>benchmark interest rate in response to the strengthening labor
>market and rising wages. Employment growth may be weak but it is
>apparently enough to provoke the Fed.
Yeah, unemployment is low, but I suspect - and we probably won't know the truth for years - that the Fed is trying to burst the housing bubble and get US foreign accounts into better shape. And they're probably genuinely worried about the inflationary effects of the energy spike.
Doug
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Your analysis makes a heck of a lot of sense to me, Doug.
On top of this, the stock market seems to have been hovering somehwere just below its peak at the end of Clinton years, for four years now. Was this a big-boy-player consensus way of deflating the stock highs of 2000?
Just speculating, Mike B)
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