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

To: sea_biscuit who wrote (49878)	4/19/2006 3:44:52 PM
From: aknahow	Read Replies (1) \| Respond to of 116555

Well you could well be correct, but sometimes a banana is just a banana. There is probably real worry about a recession. Few want to blamed as having caused a recession, or even something worse. Since indicators lag it is fair to say the Fed. can't tell if the tightening to date has been more than needed. The constant reassurances that the Fed is "done" may just reveal real concern about having overshot the required amount of tightening.

To: sea_biscuit who wrote (49878)	4/19/2006 5:28:13 PM
From: shades	Respond to of 116555

Fed Fisher: Globalization Has Helped Fed Fight Inflation . By Michael S. Derby Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Falling trade barriers and the forces of globalization have aided the Federal Reserve's effort to contain inflation, Dallas Fed President Richard Fisher said Wednesday. "The Fed has been able to contain inflation with faster growth than would have been possible in the absence of globalization," Fisher said in remarks prepared for delivery before a group at the Central Bank of Argentina in Buenos Aires. "The secular impact of enormous new capacity and factor inputs from China, India and the other new economic entrants - transmitted through globalization - has offset the price pressures on commodities and other goods that have been spurred by growing demand in those countries, as well as normal cyclical price developments," Fisher said. In his speech, Fisher also warned against impulses to put in place new trade barriers. He noted, "protectionism could lead to interest rates higher than otherwise required to maintain low inflation." Fisher, who largely steered clear of addressing the near-term U.S. economic and monetary policy outlook, reminded his audience that "regardless of your views on globalization, keeping inflation in check is a central bank's sacred mission." -By Michael S. Derby; Dow Jones Newswires, 201-938-4192 michael.derby@dowjones.com (END) Dow Jones Newswires April 19, 2006 17:15 ET (21:15 GMT) Copyright (c) 2006 Dow Jones & Company, Inc.- - 05 15 PM EDT 04-19-06