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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (3202)	12/11/2003 3:17:03 PM
From: mishedlo	Read Replies (2) \| Respond to of 110194

Thoughts on FOMC minutes My broker just sent me this. I have no link. When this news hit, Eurodollars, stocks, and treasuries all rallied like a banshee. I shorted a couple more eurodollar puts this AM and bought a future just seconds before liftoff on this ================================================================ WASHINGTON --The Federal Reserve's top policymakers fretted at a meeting six weeks ago that the U.S. jobs market might not recover fully until late 2005 "or even later" even if the economy were to grow at an above-average pace. Members of the Federal Open Market Committee believed the economy would grow "at a pace near or somewhat above" its potential for the next two years, according to minutes of a meeting they held on Oct. 28. But they said that growth would not generate a quick recovery in the battered U.S. labor market or fan inflation because employers appeared set to obtain "substantial further increases in productivity" from workers. "Members generally anticipated that an economic performance in line with their expectations would not entirely eliminate currently large margins of unemployed labor and other resources until perhaps the latter part of 2005 or even later," according to the minutes, which the Fed released Thursday. Under the circumstances, the policymakers said, inflation would probably remain at "very low levels over the next year or two." Those views cast new light on the Fed's recent assertions, most recently on Tuesday, that it can afford to keep interest rates low for a "considerable period" despite the sharp acceleration in economic growth recently. Most analysts have taken that to mean the Fed won't begin raising its key federal funds rate at least until the middle of 2004. The minutes could push those expectations out into 2005.