Over the last year a number of analysts have predicted the Fed would raise the Fed Funds rate "soon". They have all been wrong.The Fed's mission is to conduct "monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates". Historically the Fed has not raised the Fed Funds rate until unemployment drops significantly. Based on the the Fed's own forecasts of the unemployment rate and inflation, the Fed will probably not raise the Fed Funds rate until late 2011 at the earliest.San Francisco Fed senior vice president and associate director of research Glenn Rudebusch writes: The Fed's Exit Strategy for Monetary PolicyRudebusch's economic letter suggests that the Fed might not raise rates until 2012 ...Jeffrey Martino Young at Essex Mortgage Bank in

Santa Rosa,Ca, 95404

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