Gold is up over $730, oil is still rising, the dollar is hovering in the low 79’s and the long end of bonds are down pushing yields up. A quick look a Bankrate show mortgage rates going up including the Jumbo. The rate cut could exacerbate the housing slump if it sustains market fears of inflation. It is too early to tell but early indications are not looking good.

This was a risky move by the FED. If we see an increase in measured inflation what are they going to do then?? Keep an eye on oil if it stays elevated the markets will react especially as we get closer to big heating bills in the midwest and east coast.