# The Fed jacks rates for the 11th time in a row



## wayneL (21 September 2005)

WASHINGTON (MarketWatch) - The Federal Reserve raised interest rates again Tuesday, saying Hurricane Katrina could fuel inflationary pressures but does not pose a persistent threat to the U.S. economy.

http://www.marketwatch.com/news/sto...135-4A68-9656-6F9D76904CAC}&siteid=mktw&dist=

*It doesn't look like they liked it very much!* A 14 point selloff on the S&P fron the announcement LOL:


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## markrmau (21 September 2005)

I wonder what the implications for gold are.

Inflation up -> gold becomes a safe haven -> gold up.
Inflation up -> interest rates up -> US dollar up -> gold down.

I am beting on the second one and sold my remaining BGF yesterday.


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## Milk Man (21 September 2005)

markrmau said:
			
		

> I wonder what the implications for gold are.
> 
> Inflation up -> gold becomes a safe haven -> gold up.
> Inflation up -> interest rates up -> US dollar up -> gold down.
> ...




I'm not so sure. You can't stop rising water with a single sandbag.


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## DTM (23 September 2005)

Hi Wayne

I've been keeping a running commentry on the S&P 500 with some friends.  All correspondence written were done before the events.   

Enjoy.

PS Charts showed that yesterdays fall stopped on support (not on chart I'm posting) and today was a bounce off it.  If  this bounce holds in the next couple of days then we could expect a continue of upwards movement.  If it falls below yesterdays low, then look for it to test the support line drawn in on my chart.


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