Sunday, May 23, 2004

Rates To Rise As Economy Grows

With 3 straight quarters of significant growth, economic worries seem to be coming to an end in the US - almost. The worry now is the economy will grow out of control - inflating prices along the way.

While overnight loan rates are still at a record low of 1%, analysts agree rates must come up to closer to 4% over the next year to offset the possibility for widespread inflation.

Data analysis points to a 95% chance the FED will raise interest rates by 1/4 percent during it's June 30 meeting.


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