Many investors are predicting that the Fed will not raise rates because of Katrina and it effect slowing the US economy. However most economists predict that the Fed will increase its benchmark borrowing rate by a 0.25 percentage point.
This is supported by the US benchmark gold futures, which are up to a 17-year high of $US463.30 an ounce. If for some reason the Fed did leave rates where they are, I think the market would react very favorably but this scenario seems unlikely.
Posted by James Trotta at September 18, 2005 6:31 AM