Hey, Wally, what is this, a Fed governor trying to use common sense? Whatsamatta, didn't they teach him how to read tea leaves? From the article you linked:
<<`I can't second-guess the markets. But strong real growth by itself is not
necessarily inflationary, especially if it is supply-side growth fueled by
technology, productivity,' McTeer told reporters when asked if he thought that U.S. financial markets, pressured by
interest rate jitters in recent sessions, were overreacting.
McTeer this year is a voting member of the Federal Open Market Committee (FOMC) that raised the federal funds rate
for overnight inter-bank lending by one quarter-point to 5.0 percent when it last met on June 30.
The FOMC will convene again on August 24 amid market expectations of another quarter-point funds rate hike largely
fueled by rising wage pressures.
"If you are worried about inflation, the most important statistics to look at are the statistics on inflation...
``Since our last meeting, you may have noticed that the CPI increased zero (percent) and zero (percent),' McTeer said,
referring to the CPI that was reported unchanged in both May and June after a worrisome spike in April.
``It's not likely that can continue, but we have already seen that strong growth does not necessarily lead to higher
inflation,' McTeer also told reporters after addressing an economic forum in Dallas.>> |
