It is Fed today. As usual, the WSJ‘s provides an excellent dissection of the Fed Statement:

WSJ: "THE FEDERAL RESERVE’S STATEMENTS reflect how the members of the central bank’s Federal Open Market Committee perceive the economy. Their words have world-wide impact and the slightest changes are scrutinized for clues about where interest rates may be headed.

The May 3 statement, issued after the third meeting of the year, announced that the Fed was raising its key short-term interest rate by one-quarter point to 3.0%, its eighth increase in a row. The central bank showed more concern with oil prices affecting purchasing power, but didn’t signal any plans to alter its current campaign of gradual interest-rate increases — a change some were expecting. In a strange twist, the Fed at first omitted a key phrase on inflation from the previous statement – "Longer-term inflation expectations remain well contained." But then, late in the day, the Fed said the omission was a mistake and issued a revised statement. Below is a look at differences between the March statement and the May one. (Note: All bolding shown below appeared on the Fed statement.)

click for larger graphic


graphc courtesy of Online WSJ


Keeping the Pace
WSJ, May  3, 2005

Category: Economy

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

Comments are closed.