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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (8583)	7/1/2004 2:45:08 PM
From: mishedlo	Respond to of 116555

FOMC debated 'measured' wording at May 4 meeting Thursday, July 1, 2004 6:24:12 PM WASHINGTON (AFX) -- Some members of the Federal Open Market Committee had reservations at the May 4 meeting about language in the official statement saying the committee would raise interest rates at a "pace that is likely to be measured," a summary of the minutes of the meeting released Thursday show. The group agreed unanimously that previous wording that said the FOMC could be "patient" in raising rates was "no longer warranted," the minutes say. Some members objected to adding the "measured" wording, fearing that it would tie their hands if their forecast of continued mild inflation did not pan out Other members argued that "the process of returning policy a more neutral setting would be more gradual, once under way, than in past episodes when inflation was well above levels consistent with price stability," the minutes say In the end, all 12 members of the FOMC agreed that such language would not restrain the committee if economic conditions justified a faster pace of rate hikes. Although some members argued that inflationary pressures were no longer benign, there is no mention in the summary of any recommendation that the FOMC should raise rates at the May 4 meeting. The FOMC held interest rates steady at the May 4 gathering, but boosted the overnight lending rate by a quarter percentage point at the June 29-30 meeting. The committee also retained the 'measured' language at this week's meeting while adding a vow to do whatever was needed to maintain price stability Most analysts have concluded that a "measured" pace of rate hikes means a quarter point hike at all or nearly all of the four FOMC meetings remaining this year. fxstreet.com ====================================================== Anyone here think the FED will hike 1/4 point at all (or most) of the 4 remaining meetings this year? That is what is priced into the eurodollar futures as well. Another 1.5 points for DEC 2005. M