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To: untrained skeptic
I thought the Fed fights inflation by raising interest rates and therefore reducing the amount people borrow,

Inflation is caused when the money supply grows faster than the economy. The Fed could lower rates while also lowering money supply growth.

If the Fed fights inflation, interest rates are going to go up.

The Fed "controls" short term rates. If they raise those rates, long term rates could drop.

15 posted on 05/30/2007 10:17:18 AM PDT by Toddsterpatriot (Why are protectionists (and goldbugs) so bad at math?)
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To: Toddsterpatriot; Mase

See Toddler, I can go back and look up old posts too. You said the market set interest rates today, but look at this old post of yours:

“The Fed “controls” short term rates. If they raise those rates, long term rates could drop.”

And boy did I have to wade through a lot of crap posts of yours to find this gem.


104 posted on 07/19/2007 1:11:23 PM PDT by richalessi
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