ntage point, and since these raises failed to slow the economy, Greenspan, unable to take anymore chances doubled the previous with a promise of more to come. The interest rates are expected to reach 7.0% by June, the most severally effected by these constant raises are shareholders. Because of these immediate effects market economists are largely against the interest rate hikes. Their position is that the average inflation rate over the past three years has been at around 2% close to the markets expected inflation rate of 1.9%. The economy is on a sixteen year run, continually moving forward. The historical data is there however; the consumer price index was at 1.6% over the past twelve months and the March year over year rate was at 3.7% The market economists do not stop there due to the vast improvements in productivity, largely due to increased technology and the internet, some market economists argue that Greenspan should leave the economy as is. Ideally the growth rate of the economy should be set by the growth rate of the labor force and productivity, and if the two were similar, inflation would not be a factor. The economy has however been moving too fast for too long, if nothing is done or if the recent increase proves to be too little too late we as a nation need to prepare ourselves for the impact of a wall of inflation.Despite an unchanged core consumer price index in April, which excludes volatile food and energy prices which rose the expected 0.2%, Greenspan is facing pressure from all sides to continually increase interest rates in order to slow down the economy’s blistering pace. The stock market will feel the effects immediately and therefore oppose any further price hikes, however; a recession will destroy us. ...
