I knew protectionists can't read and are bad at math. Now you've shown that you're deaf as well.
Release Date: August 8, 2006
For immediate release
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent.
Economic growth has moderated from its quite strong pace earlier this year, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices.
Readings on core inflation have been elevated in recent months, and the high levels of resource utilization and of the prices of energy and other commodities have the potential to sustain inflation pressures. However, inflation pressures seem likely to moderate over time, reflecting contained inflation expectations and the cumulative effects of monetary policy actions and other factors restraining aggregate demand.
Nonetheless, the Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Susan S. Bies; Jack Guynn; Donald L. Kohn; Randall S. Kroszner; Sandra Pianalto; Kevin M. Warsh; and Janet L. Yellen. Voting against was Jeffrey M. Lacker, who preferred an increase of 25 basis points in the federal funds rate target at this meeting.
Don't see the word recession in the statement. Haw about you?
Well I'll have to give Shep a call and see if he was mistaken...
Interest rates have risen steadily for over 2 years...Yesterday they stopped...
Nonetheless, the Committee judges that some inflation risks remain
An astute fella such as yourself would recognize, it would seem, that by that statement one could deduce that an inflation risk has been there for some time...And that risk hasn't stopped the interest rate from climbing...
Now however, the same inflation risk has become an issue...Maybe the Fed is trying to sugar coat it for you...