Wednesday, June 15, 2005

Last Week in Review

Greenspan testified before congress as to the state of the economy last week. Greenspan first affirmed that the economy looks healthy, and stated "policy accommodation can be removed at a pace that is likely to be measured.” Translation: the Fed will likely continue its series of rate hikes through the summer, taking the Fed Funds Rate between 3.5% and 4.00%.

He also confirmed that although the media continues to beat the drum, a nationwide housing bubble is not eminent. He did state that a few markets where prices have risen dramatically might see a little “froth”, but not a bubble.


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