tag:blogger.com,1999:blog-2335748440449035592.post9006979626978047510..comments2008-06-25T16:35:59.430-04:00TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2335748440449035592.post-7602000594280345162008-06-25T16:35:00.000-04:002008-06-25T16:35:00.000-04:00what is a good company to buy that will profit from the poeple freezing to death; that is, which electic company or other energy company..or will the ung do just fine..altho it doesnt move FAST><BR/><BR/>Fed Keeps Rate at 2%, Cites `Upside' Inflation Risks (Update4) <BR/><BR/>By Craig Torres<BR/><BR/>June 25 (Bloomberg) -- The Federal Reserve kept its benchmark rate at 2 percent and warned that faster inflation may accompany some strengthening of the economy. <BR/><BR/>``Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased,'' the Federal Open Market Committee said in a statement today in Washington after a two-day meeting. <BR/><BR/>Fed Chairman Ben S. Bernanke and his colleagues ended the most aggressive monetary easing in two decades, refreshed their forecasts and reported some improvement in consumer spending. At the same time, crude oil prices have almost doubled in the past year and the cost of commodities from wheat to tin jumped to unprecedented levels. <BR/><BR/>``The Committee expects inflation to moderate later this year and next year,'' the Fed said. ``However, in light of the continued increases in the prices of energy and some other commodities and the elevated state of some indicators of inflation expectations, uncertainty about the inflation outlook remains high.'' <BR/><BR/>Treasuries, which had fallen before the statement, dropped to their lows of the day before rebounding. Two-year note yields were 2.84 percent at 3:09 p.m. in New York, unchanged from late yesterday. The Standard & Poor's 500 Stock Index was up 1.5 percent at 1,333.71. The dollar weakened against the euro. <BR/><BR/>Next Meeting <BR/><BR/>``It is more or less a neutral statement, which is consistent with policy on hold pending more clarity,'' said James O'Sullivan, a senior economist at UBS Securities LLC in Stamford, Connecticut. ``They are not tipping their hand for the next meeting.'' <BR/><BR/>As policy makers convened, reports showed U.S. home prices fell the most on record, consumer confidence touched a 16-year low, and durable goods orders were unchanged in May. Households are also falling further behind on their debt, eroding profits at lenders. Banks and securities firms have taken almost $400 billion in asset writedowns and credit losses. <BR/><BR/>``Tight credit conditions, the ongoing housing contraction, and the rise in energy prices are likely to weigh on economic growth over the next few quarters,'' the Fed said. <BR/><BR/>Dallas Fed President Richard Fisher dissented from today's decision, preferring an increase. He dissented against the rate cut at the April meeting. <BR/><BR/>Oil Prices <BR/><BR/>Oil prices touched a record $139.89 June 16, extending a rally that helped push the consumer price index up 4.2 percent in May compared with an average rate of 2.7 percent over the past decade. Energy costs are hurting profits and household incomes, and raising expectations for future inflation. <BR/><BR/>Dow Chemical Co. said yesterday that higher raw materials costs will cause the company to raise prices by as much as 25 percent in July, following an increase of as much as 20 percent. United Parcel Service Inc. lowered its second-quarter profit forecast on June 23 because of rising fuel costs and slowing U.S. growth. <BR/><BR/>American consumers foresee average annual inflation of 3.4 percent over the next five years, the highest expectation since 1995, according to the Reuters/University of Michigan survey. <BR/><BR/>Policy makers are ``going to remain about where they are until the data come in and make a strong case to move one way or the other,'' William Poole, former president of the St. Louis Fed, said in a Bloomberg Television interview. <BR/><BR/>Housing Recession <BR/><BR/>Home prices in 20 U.S. cities fell in April by the most on record, signaling the housing recession is far from over. The S&P/Case-Shiller home-price index dropped 15.3 percent from a year earlier. The gauge has fallen every month since January 2007. Employers have reduced payrolls for five consecutive months, helping push the unemployment rate to 5.5 percent. <BR/><BR/>Central bankers reduced the target rate for overnight loans between banks by 2.25 percentage points in 2008 with a series of aggressive rate actions, including two three-quarter-point cuts. In addition, the Fed invoked emergency authority in March to start lending directly to investment banks. The central bank also provided $29 billion of financing to secure JPMorgan Chase & Co.'s takeover of Bear Stearns Cos. <BR/><BR/>The financial system remains under stress. The Standard and Poor's Financials Index, which includes 90 bank, brokerage and insurance stocks, fell 21 percent from May 2 to June 24. <BR/><BR/>Chenault Warning <BR/><BR/>``Business conditions continue to weaken in the U.S. and so far this month we have seen credit indicators deteriorate beyond our expectations,'' American Express Co. Chief Executive Officer Kenneth Chenault said in a statement today. <BR/><BR/>Financing rates are also rising for consumers. The rate on a 30-year fixed-rate mortgage rose to 6.3 percent June 24 versus 5.79 percent at the start of the year, according to Bankrate.com. <BR/><BR/>``There has been some tightening of financial conditions over the past month,'' Brian Sack, senior economist at Macroeconomic Advisers LLC in Washington, said before the rate decision. ``That will certainly weigh on the outlook.'' <BR/><BR/>Fed officials discussed their new forecasts for 2008, 2009 and 2010 at the meeting. Bernanke will reveal the FOMC's new outlook for inflation, growth and employment in his semi-annual congressional testimony next month. <BR/><BR/>Wall Street analysts are divided on how higher energy costs may affect growth. The 38 percent rise in oil prices this year absorbs more consumer dollars, pulling spending away from other goods and services. If inflation is allowed to rise further, the purchasing power of incomes could fall. After tax incomes adjusted for inflation rose at a 1.8 percent rate for the 12 months ending April, versus 3.1 percent for the same period a year earlier. <BR/><BR/>The federal government has also injected $70.8 billion into the economy through tax rebates, which could lead to one or two quarters of stronger growth and add momentum to price increases.Dr. Baugushttp://www.blogger.com/profile/03051515116594443127noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-50228513317076463902008-06-24T22:58:00.000-04:002008-06-24T22:58:00.000-04:00OT: http://tinyurl.com/6zhq9g<BR/><BR/>"U.S. Sugar's land amounts to 9 percent of the total U.S. cane and beet acreage." Bought out by the state of Florida for wetland renewal.<BR/><BR/>DBA's holding are 22% sugar futures at present. One more inflationary pressure for the long term here. <BR/><BR/>Unless one thinks the sugar lobby will be allowing any more imports? McCain actually pledged to do so if elected, but I doubt he could keep that promise even if he were to win.cm202bchttp://www.blogger.com/profile/01223048799754759550noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-22334749164581656652008-06-24T18:24:00.000-04:002008-06-24T18:24:00.000-04:00Their constituents have yet to really feel the hit - the grocery aisle and gas station are immediate so we will deal with that first. No one looks ahead or with timeline out farther than 8 weeks. So this is not on their radar<BR/><BR/>But shall we expect the Congressional Hearing on Utility Company Gouging by January 09 or March 09? :) Another parade of executives and another attack on speculators.<BR/><BR/>Perhaps oil will be back to $100-$110 and ng down by 25% by then and we can avoid part of the dog and pny show but most of these utilities are probably locked in at crude $60 and ng $6-8. So any increase will come as a shocker. <BR/><BR/>More fun for Congress!TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-74689017347416096702008-06-24T18:20:00.000-04:002008-06-24T18:20:00.000-04:00Four + bedroom homes that heat with Heating Oil (Northeast) will take a direct hit and continue the trend down on selling homes. The volume of homes going on the market should increase tremendously. How come the geniuses in Congress have not piped up? Maybe in September, or closer to the election.yayankeehttp://www.blogger.com/profile/08500359981802753931noreply@blogger.com