Quote:
Originally Posted by jimjamuser
Prices won't RETRACT. Historically they go up 3% each year. The FED has just reduced the BORROWING rate by 1/2 of a percent. They initially raised the RATE to keep prices from going up (say 7%) now they are satisfied that PRICES have STOPPED going up. Now they hope that PRICES will go back to about a 3% rise. So, they reduce the BORROWING rate by 1/2 of a percent.
.........The FEDS purpose is to prevent a wild price SPIRAL that gets out of control.
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Too late, it's already out of control.