Chilling During the 2nd week of training...

So I am now in my second week of training with only one more to go before I begin my coverage area; this has given some time to do some browsing and, as I said in my response to Matt Weight's inquiry as to where I was, came across this article much to the dismay of many of my blindly optimistic colleagues. I still stand behind my prediction made in the final board meeting with all of those overhyped tools.

NEW YORK (AP) -- A Federal Reserve official's warning about a possible resumption of interest rate hikes rattled Wall Street Tuesday, wiping out an early advance and leaving stocks narrowly higher by the close.

The comments by Chicago Fed President Michael Moskow unnerved investors looking to revive last week's rally after having collected profits on Monday. Retailers and other sectors dependent on consumer spending stumbled after Moskow said, "some additional firming of policy may yet be necessary to bring inflation back into the comfort zone within a reasonable period of time."

The Fed left interest rates unchanged earlier this month after raising them 17 straight times. Wall Street has rallied since then on hopes this would be the end, but one analyst said Moskow's comments could be "putting out a trial balloon" to gauge the market's reaction to a continuation of rate hikes.

"The market has discounted the likelihood of another rate increase by about a 20 percent chance for the next meeting" in September, said Scott Merritt, a U.S. equity strategist for JPMorgan Asset Management. "He might want to get that up to 50 percent to get more flexibility. If expectations get too high or low, (Fed Chairman Ben) Bernanke can't really go against it or he'll lose credibility."


http://biz.yahoo.com/ap/060822/wall_street.html?.v=20