Economic Outlook

After 17 consecutive rate hikes that saw the federal funds rate climb from 1.00% to 5.25%, the Federal Reserve has elected to hold the rate stable for the past five meetings. The Hovde Group believes a balance of economic conditions exists today that is likely to persuade the Federal Reserve to maintain its current interest rate stance throughout most, if not all, of 2007.

Interest Rates

Generally speaking, money managers are not anticipating that the Fed will cut interest rates anytime in the near future. Economic growth is quite satisfactory right now, despite what might be called a near-depression in housing; and inflation is inching down, not up. So why would the Fed want to change course? (Answer: it doesn't.)

Sound Advice

Once a year I call Dean Med Center's hearing people and get a simple hearing test via the telephone. The number is 252-5252. I think it is a good idea to test your hearing periodically and this is an easy way to do it. Try it.