Greenspan Speaks
This morning Alan Greenspan spoke in front of Congress and in no-uncertain terms confirmed that the “measured pace” of fed funds rate hikes would continue in the near future. The Federal Open Market Comittee has raised rates from a 46-year low in June of last year to 3.25%. That is a 2.25% increase and the end is not in sight. Greenspan mentioned that the economy had suffered from a slow down in the Spring of this year due to inflationary fears. The 10 year treasuries however, have hovered in the 4% range for some time now and the FOMC appears to have lost control over interest rates in the US economy at this point in my opinion.