interest rates

[DICKENS]

It's time to see how far the Fed can be pushed.  Build up
some liquidity.  Maybe spread some rumors of imminent Fed
action and sell short on the "inside information." But
Greenspan insists he's not intimidated because "wages
do not seem to be accelerating despite scattered reports
of some skilled-worker shortages, and advances in
productivity early this year are holding down unit labor
costs" (quoted in the New York Times, February 23, p. C4).
So what's determining interest rates?