Fed statement (my bold):
"The Federal Open Market Committee decided to keep its
target for the federal funds rate unchanged at 1-1/4 percent.
Recent readings on production and employment, though mostly
reflecting decisions made before the conclusion of hostilities,
have proven disappointing. However, the ebbing of geopolitical
tensions has rolled back oil prices, bolstered consumer
confidence, and strengthened debt and equity markets. These
developments, along with the accommodative stance of monetary
policy and ongoing growth in productivity, should foster an
improving economic climate over time.
Although the timing and extent of that improvement remain
uncertain, the Committee perceives that over the next few
quarters the upside and downside risks to the attainment of
sustainable growth are roughly equal. In contrast, over the
same period, the probability of an unwelcome substantial fall
in inflation, though minor, exceeds that of a pickup in
inflation from its already low level. The Committee believes
that, taken together, the balance of risks to achieving its
goals is weighted toward weakness over the foreseeable future.
Voting for the FOMC (News - Websites)monetary policy action were Alan
Greenspan (News), Chairman; William J. McDonough, Vice Chairman; Ben
S. Bernanke; Susan S. Bies; J. Alfred Broaddus, Jr.; Roger W.
Ferguson, Jr.; Edward M. Gramlich; Jack Guynn; Donald L. Kohn;
Michael H. Moskow; Mark W. Olson; and Robert T. Parry."
GV, are you still an inflation hawk? |
