For the second week in a row, Alan Greenspan talked a jumper off his ledge. On Monday, the whole interest-rate structure rose to new highs out of fear that the Fed is about to begin a severe campaign–perhaps opening with a half-percent increase on June 30. If only 0.25 percent, the Fed is still headed way, way above the 1 percent rate of the last year-and-a-quarter. Even if the rate-rising campaign is gradual, a 20-year decline in interest rates has concluded. Rates on everything soared on Monday: the 10-year T-note to 4.85 percent, the Fed-sensitive 2-and 5-year notes to 2.9 percent and 4.08 percent, respectively, and 30-year fixed-rate mortgages to 6.5 percent. The Chairman is not a bullhorn-in-the-street type, gathering the jumper's sobbing family to plead with him; no, he's the ...
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