Economy braces for rising interest rates

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

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.