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March 22, 2007

Federal Reserve Rate Cut Signals Business Check In With a Neutral Bias

Our business check on the Federal Reserve’s left its key rate at 5.25% for the 6th consecutive meeting citing possible "additional firming" concerns in the future. They said their predominant policy concern is that business and consumer inflation does not heat up to a frenzied pace. The rate being left alone and signals more business growth ahead.. This bodes well for the real estate and mortgage industry concerns that tightening would have.

If inflation does not moderate itself future policy may shift.

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