Deficit Cuts May Effect Rates –

Political pressure to cut the deficit has led Republicans and Democrats to propose spending cuts.  The cuts could have an effect on the steps taken by the Federal Reserve.  The Fed is more likely to keep rates at or near the current low rate due to lower spending.  The weak housing market is another factor working against potential rate hikes.

To read a related CNN Money article, please click here:

http://money.cnn.com/2011/04/14/news/economy/thebuzz/index.htm

James Sutliff

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