>Some analysts think that the Fed has its eye on potential labor
>market tightening and concomitant wage gains in 2006 and 2007.
>Given the final sentence above, this opinion makes sense to me.
I half think they're using "inflation" as a cover for bursting the housing bubble.
Doug
^^^^ CB: This wouldn't be a reason they would raise , but don't higher interest rates make the impact of current account deficit worse ? Foreign lenders get higher returns on U.S. notes ? Or not ?
(Then there's the old "don't higher interest rates make more money for creditors in the U.S." ?)
My bank now has the name J.P. Morgan on the door.