What will [tag-tec]interest rates[/tag-tec] do this year?
The [tag-ice]Federal Reserve[/tag-ice] doesn’t seem to be in any hurry on an [tag-self]inflation[/tag-self] decision, which means they’ll probably stay flat where they are for now.
Inflation seems to have stabilized for the moment, but a cautious Fed is taking more time before breathing easier.
Our prediction is that the federal funds rate will hold steady at 5.25% . There won’t be any major upheavals up or down.
If Fed Chairman Bernanke feels the economy is heating up a little too much he’ll possibly raise the rate a quarter-point. But that will be later in the year, if it happens at all.