Look for a federal funds rates of 3.25% by the end of 1992 and a gradual rise to
3.5% in 1993.
How much rates must rise to
bring the demand and supply for savings into balance depends on how responsive the demand of private borrowers is to those rates.
The Committee recognized that as these forces abated, short-term interest rates would likely have to rise to forestall inflationary pressures that would eventually undermine the expansion.
Diminished slack in many industries and expectations of continued business expansion were among the chief factors giving rise to the increase in these outlays.
Sales east of Park Avenue averaged $541 per square foot in 1998, up from $447, versus a rise to
$649.79 per square foot from $451 in 1997 west of Park Avenue.
However, it is unclear whether the forces giving rise to
the unusual behavior of the aggregates will wane in coming months or continue unabated.
Nor example, the city's most valuable hotel, the Marriott Marquis, saw its final AV of $130.5 million last year rise to
a tentative AV of $147.6 million now, an increase in its fair market value of $38 million.
In Germany, electoral setbacks to the governing coalition's leading party and other centrist parties gave rise to market uncertainty at a time when there was already considerable confusion in the market surrounding the imposition and subsequent removal of a withholding tax on interest income.
Under these circumstances, market participants appeared increasingly willing to overlook, at least for the time being, developments cited last year as giving rise to concerns about the dollar.
Believing that the central banks would again seek to limit the dollar's rise to these levels, market participants appeared less aggressive about bidding for dollars in the exchange market.
economic growth was proceeding at a pace that could give rise to
new inflationary pressures.