Ork,
Thanks for posting.
The Fed cutting next week? I don't see it.
Of course they are saying they won't cut, so maybe they will <g>
GT
TH
yahoo.reuters.com
Fed officials see obstacles to lower inflation-WSJ
Wed May 2, 2007 9:18pm ET
Company Market News
Fed officials see obstacles to lower inflation-WSJ
NEW YORK, May 2 (Reuters) - Federal Reserve officials see obstacles to further declines in U.S. inflation, including a rebound in energy prices, a weaker dollar and the failure of unemployment to rise as expected, the Wall Street Journal reported on Wednesday on its Web site.
The Journal reported the statements from unnamed Fed officials ahead of a meeting of the policy-setting Federal Open Market Committee next week. They are likely to leave their target for short-term interest rates at 5.25 percent, the Journal reported.
They also are likely to reiterate that inflation is their dominant concern, even though it recently edged lower, the newspaper reported.
Fed officials are happy with the latest inflation news, the Journal said. The "core" price index of personal-consumption expenditures, which excludes food and energy, did not rise in March and was up 2.1 percent from a year earlier, the paper said. The preferred rate for most Fed officials is 2 percent or lower, the paper added.
But the Fed sees risks that could push inflation higher, the Journal said, with the top concern being that unemployment has kept falling despite a slower economy.
Other concerns include a rebound in energy prices and the dollar, the Journal said. Since the beginning of the year, the dollar has fallen 2 percent against a basket of U.S. trading partners' currencies, the paper reported. |
