Wednesday, June 25, 2008

The Fed has kept the rate at 2%.

The Fed has kept the rate at 2%.

The Committee expects inflation to moderate later this year and next year. However, in light of the continued increases in the prices of energy and some other commodities and the elevated state of some indicators of inflation expectations, uncertainty about the inflation outlook remains high.

Moderate? Looks like the fed is out of touch. They have created this high inflation situation and now they are ignoring it.

The substantial easing of monetary policy to date, combined with ongoing measures to foster market liquidity, should help to promote moderate growth over time. Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased. The Committee will continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability.

At least they are talking like they care about inflation! For anyone that thinks the fed will raise anytime soon, they are just deluding themselves. This is a dovish fed and they are not going to do anything until at least after the election.

Voting against was Richard W. Fisher, who preferred an increase in the target for the federal funds rate at this meeting.

I vote Fisher for FOMC chairman.

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