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All Eyes Will be on the Fed as Investors Look for Signals on Both Inflation and Interest Rates

William Patalon (June 23rd, 2008) Writes:
By William Patalon III Executive Editor Money Morning/The Money Map Report The U.S. Federal Reserve will be in the spotlight again this week - and not because of those speaking engagements that seem to help whipsaw investor emotions. Tomorrow (Tuesday) and Wednesday, central bank Chairman Ben S. Bernanke will meet with his fellow policymakers on the interest-rate setting Federal Open Market Committee (FOMC). After one of the most aggressive rate-cutting campaigns in its history - a stretch that’s seen the Fed pare its benchmark Federal Funds rate from 5.25% in mid-September all the way down to 2.0% today - most experts believe the central bank’s next move will be to take interest rates higher to blunt inflation. But few of these Fed-watchers are willing to predict that the increase will be made now, or even in August, although the interest-rate-futures market is ...

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