When Will The Fed Stop Raising Rates?

  • June 30, 2005
  • TradingMarkets Editors

The Fed raised rates by 25
basis points, as expected. It was the ninth straight rate increase in
the past year. The Fed left its policy statement largely unchanged, saying rates
will be raised at a “measured pace.”   The Dow fell by
triple digits as traders wanted an indication as to when the Fed would stop
raising rates.

Initial jobless claims for the week of 6/25 fell 6000 to 310,000. Personal
income for May rose +0.2%;  personal spending was unchanged, less than
expected.

The Chicago PMI was 53.6 for June vs 54.1 in May.

Treasuries rose, capping their best quarter since 2002.

AAA said it expects more drivers to hit the road this July 4 weekend than
did during Thanksgiving. This, despite higher gasoline prices.

T. Boone Pickens said on Monday he sees gasoline reaching
$3/gallon within a year.

BP Chairman John Browne is in talks with Libya’s Muammar
Qaddaffi, hoping to land an exclusive deal. Libyan oil production was 3.28
million bpd in the 1970s and is about half that now.

Among newsletter writers, 55.1% are bullish, the highest level since
March. Bears are 19.1%, the lowest figure since December.

Brice Wightman

 

Â