THAT Was a Hawkish Statement?

By Chip Hanlon | June 25, 2008 | 2:40 PM | 4 Comments

Another post-meeting statement from the Fed with a little something in it for everyone (or, as Ron Insana just hilariously said on CNBC, "a little of nothing in it for everyone.").

In fact, I'd argue that statement was a little weaker than some were hoping for.  Sure, it contained the obligatory, "However, in light of the continued increases in the prices of energy and some other commodities and the elevated state of some indicators of inflation expectations, uncertainty about the inflation outlook remains high," but that remark came after Fed's remarks earlier in its statement about a softening labor market and its belief that inflation will moderate later this year on its own.

Those hoping for a rate hike at the next meeting may be kidding themselves. Personally, I'd like to see them tighten, but I'm not holding my breath...

Tail-Wind Intact Fed helping fuel, fuel. Submitted by devinbrady on Wed, 2008/06/25 - 3:26pm » reply |

I expect The Fed to stay pat and buy some time until they are certain this economic blip that they see is sustainable. I found it interesting that they conclude the outlook for growth has improved. Based on what? However, they mention upside risks to inflation have increased which signals they are done cutting. I see them staying pat for sometime while they wait to confirm the trend. Submitted by Jim Slagle on Wed, 2008/06/25 - 3:08pm » reply |

Looking for "His Inner Volcker?" I think he found his "Inner Arthur Burns" Submitted by Kurt Kasun on Wed, 2008/06/25 - 3:07pm » reply |