by Calculated Risk on 12/14/2005 04:55:00 PM

The Orange County Business Journal quotes PIMCO's Bill Gross:

"Housing in the next month or two will display extreme weakness, and the Fed will stop,"

The short article adds:

Gross, Pimco's chief investment officer, predicts a rate cap of 4.5%, though others see at least two more hikes by the Federal Reserve.

Two predictions to check back on in a couple of months.


Click on graph for larger image.

According to Dr. Altig's calculations, the Fed Funds Futures shows at least two more rate hikes. This is a regular feature at Macroblog.

Right now I think hikes to 4.5% in January and 4.75% in March are likely. Although I agree with Gross that the end of the rate hikes is near.