Thursday, April 27, 2006

Ben Bernanke On Interest Rate Changes

Here are the two key paragraphs regarding future interest rate changes from today's speech:

"In the statement issued after its March meeting, the FOMC noted that economic growth had rebounded strongly in the first quarter but appeared likely to moderate to a more sustainable pace. It further noted that a number of factors have contributed to the stability in core inflation. However, the Committee also viewed the possibility that core inflation might rise as a risk to the achievement of its mandated objectives, and it judged that some further policy firming may be needed to keep the risks to the attainment of both sustainable economic growth and price stability roughly in balance. In my view, data arriving since the meeting have not materially changed that assessment of the risks. To support continued healthy growth of the economy, vigilance in regard to inflation is essential.

"The FOMC will continue to monitor the incoming data closely to assess the prospects for both growth and inflation. In particular, even if in the Committee's judgment the risks to its objectives are not entirely balanced, at some point in the future the Committee may decide to take no action at one or more meetings in the interest of allowing more time to receive information relevant to the outlook. Of course, a decision to take no action at a particular meeting does not preclude actions at subsequent meetings, and the Committee will not hesitate to act when it determines that doing so is needed to foster the achievement of the Federal Reserve's mandated objectives."

10 comments:

  1. Do you always delete comments that don't reflect your own point of view?

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  2. If you accuse me or commentators of being a 'moron' or other bad language I might delete comments.

    ReplyDelete
  3. anonymous
    Do you always delete comments that don't reflect your own point of view?

    If your read a couple of postings you will see plenty of comments that oppose Mr. Bubblemeter's point of view. On several occassions I have criticized him and he responds fairly.

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  4. I applaud Dave for nuking obnoxious comments. We are doing the same thing.

    A logical disagreement is one thing, but name-calling is another.

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  5. Do these guys have to go to fedspeak school?...Bennie is starting to sound like crazy Al.

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  6. BB should take a cue from G William Miller appointed by J Carter. Miller was a political hack as is BB- The FED will have to keep raising rates- if not they will suffer the same fate as Miller and Carter in 1979.

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  7. David.

    Kill the trolls and if blogger lets you, ban their IP addresses.

    Otherwise they tend to move in and dirty up your house.

    Tom

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  8. "Kill the trolls and if blogger lets you, ban their IP addresses.
    Otherwise they tend to move in and dirty up your house"

    Are you kidding? The trolls make this blogsite fun. We get to poke fun and bash their statements.

    Most of my comments are troll bashing in nature. The rest is complaining about housing. None of them are insightful economic analysis.

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  9. 30-year mortgages rise to an average 6.58 percent. A 4 year high!

    If I'm not mistaken, we weren't supposed to see rates at or above 6.5% until the end of the year. Even if the Fed stops or stalls the long bond market smells inflation and rates will continue up even if shorts don't.

    I see 7.25% or higher by the end of the year or sooner. 7% is the death nail in California.

    ReplyDelete