06/20/2005

Who's Tapping the Breaks?

Hello:

Perhaps the Fed has a little competition in controlling the rate of growth of the economy. It appears that raising interest rates, as controlled by the Fed, are not slowing the economy, as evidenced by the continuing housing boom(bubble?). Rather, it appears that the rising cost of oil, now trading near $60 per barrel, is having more of an effect, as evidenced by the May Leading Indicators number reportly dropping by 1/2%.

Interested in studies of donor types? Take a look at some of the information on www.cof.org. Are they right? Hard to say, but it is an interesting read.

Terri G. Millson, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager