Fed boosts rates in Greenspan's last meeting - Jan. 31, 2006

So, now we got it. Alan Greenspan has raised rates to 4.5% in his last meeting. CNN Money describes the current situation as follows:

Some economists argue that Bernanke will need to raise rates one more time to show that he is serious about fighting inflation. But others say the Fed has already nipped inflation in the bud and that further rate hikes could unnecessarily hurt the economy.

So, what do you believe? With the raising oil price I am not that confident about the inflation picture. But otherways the economy has prooved very resistent to the inflation pressures (which went for some years: 2004 oil and dollar depreciation, 2005 mainly oil, and all the time sinking unemployment, strong real estate and consumption and robust overall economic stance).

I would prefer to wait for the end of the rates raising cycle before opening up more offensive positions. Will the market also wait? We'll see.

Fed boosts rates in Greenspan's last meeting - Jan. 31, 2006