|August 9, 2004|
Don't change the rate!Alan Greenspan and his colleagues on the Federal Open Market Committee will be meeting tomorrow to talk about raising the short term rate about a quarter of point. However, this is a very bad idea:
- Oil prices are close to hitting $45 a barrel and could cause another spike in gas prices. An increase in gas prices has a negative effect on businesses, and many will probably hold off spending in anticipation of raising gas prices.
- Unemployment numbers are still not great. The last two unemployment reports have fallen short of analyses expectations.
- Retail sales in June were below analyses expectations.
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