Economy braces for rising interest rates

Fed criticized for being 'too slow to raise cost of money'

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Mortgage rates stayed about the same this week, 6.25 percent to 6.375 percent for the lowest-fee deals, but the underlying Treasury market deteriorated, rates rising, after a fierce speech by Federal Reserve Chairman Alan Greenspan.

“Fed Signals Aggressive Rate Stance” trumpeted The Wall Street Journal; true, but only as a conditional matter. Greenspan recited the Fed’s oft-stated faith that inflation will not accelerate in a troublesome way, and then said, “Should that judgment prove to be misplaced…” before threatening to tighten more and faster.