Tuesday, December 05, 2006

A softer landing?

Chalk up a couple more points for those who said the economy may enjoy a softer, than rather have to suffer through a harder, landing. If inflationary pressures are easing at this report points out, then the Fed will be less motivated to increase interest rates.

Also, some signs from the housing market that the worst may be over. To me, this sounds a little optimistic. I wonder if it is more of a signal to the Fed saying if you want the worst to be over, think about dropping those rates.

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