"The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent."
"The moderation in economic growth appears to be continuing, partly reflecting a cooling of the housing market."
"Readings on core inflation have been elevated, and the high levels of resource utilization and of the prices of energy and other commodities have the potential to sustain inflation pressures. However, inflation pressures seem likely to moderate over time, reflecting reduced impetus from energy prices, contained inflation expectations, and the cumulative effects of monetary policy actions and other factors restraining aggregate demand."
"Nonetheless, the Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information."
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The FED is attempting to keep more funny money floating around, to bail out the housing industry. Sorry, a dollar late and a day short.
ReplyDeletewill depend on the evolution of the outlook for both inflation and economic growth
ReplyDeleteIs that the Fed's way of saying "we are frightened that there might be a recession soon"?
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ReplyDeleteThe fed is trapped.
ReplyDeleteThe recession has already begun.
ReplyDeleteDavid,
ReplyDeleteThe fed is indeed trapped. Personally, I think this will hurt the economy by slowing capital inflows. We'll see...
Boombust, I agree that we're already in the recession. The sad part is, it doesn't really get bad until 2Q2007 and I see no way for improvement until into 2008! :( Note: that doesn't mean a bottom will happen in 2008, it means that my forward prognosis remains negative into 2008.
Neil
"The recession has already begun."
ReplyDeleteNot in DC... "new paradigm."
I'm really hoping we get two .25 increases before the spring buying season next year.
ReplyDeletekbr7171 said...
ReplyDelete"I'm really hoping we get two .25 increases before the spring buying season next year."
Why would you hope for something that could make home mortgage payments considerably higher for people buying a home? I mean wishing bad on others ... ? ... What kind of person does that?