21. A rising inflation threat would also make the Federal Reserve more likely to raise interest rates to cool the economy in coming months. 22. A rising inflation rate erodes the value of bond interest and principal payments. 23. A rising gold price is typically perceived to be a signal investors are seeking to hedge against the possibility of rising inflation eroding the return on their investments. 24. A rising inflation rate causes interest rates to rise, as investors expect higher compensation for lending their money. 25. A weaker euro could lead to rising inflation, which would lead to higher interest rates and borrowing costs. 26. After the housing report, bond yields rose because of fears of rising inflation and an increase in interest rates by the Fed. 27. All that caught up with the economy after the central bank raised interest rates in an effort to head off rising inflation. 28. All three Fed officials defended their decisions to raise the overnight bank lending rate in the past, even when signs of rising inflation were few or non-existent. 29. Brown, offering an explanation why rising inflation, widely expected on Wall Street, fails month after month to show itself in the numbers. 30. But beyond fuel and energy, the nation remained remarkably free of the rising inflation that the booming economy was expected to have produced by now. |