The Text From The Fed Decision

[Realistbear]

http://today.reuters.com/news/NewsArticle....ed_raises_rates

WASHINGTON (Reuters) - The following is the text of the Federal Open Market Committee's statement on interest rate policy issued at the close of its meeting on Thursday:

"The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 5.25 percent.

Recent indicators suggest that economic growth is moderating 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. Ongoing productivity gains have held down the rise in unit labor costs, and inflation expectations remain contained. However, the high levels of resource utilization and of the prices of energy and other commodities have the potential to sustain inflation pressures.

Although the moderation in the growth of aggregate demand should help to limit inflation pressures over time, 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. In any event, the Committee will respond to changes in economic prospects as needed to support the attainment of its objectives.

IMO, its hawkish. Can't see why the SM's got so excited. More like euphoria once the news is out.

[Guest Alright Jack]

http://today.reuters.com/news/NewsArticle....ed_raises_rates

WASHINGTON (Reuters) - The following is the text of the Federal Open Market Committee's statement on interest rate policy issued at the close of its meeting on Thursday:

"The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 5.25 percent.

Recent indicators suggest that economic growth is moderating 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. Ongoing productivity gains have held down the rise in unit labor costs, and inflation expectations remain contained. However, the high levels of resource utilization and of the prices of energy and other commodities have the potential to sustain inflation pressures.

Although the moderation in the growth of aggregate demand should help to limit inflation pressures over time, 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. In any event, the Committee will respond to changes in economic prospects as needed to support the attainment of its objectives.

IMO, its hawkish. Can't see why the SM's got so excited. More like euphoria once the news is out.

Because monetary policy by the fed is becoming increasingly ineffetive.

[?...!]

Because monetary policy by the fed is becoming increasingly ineffetive.

Sarcasm, I hope...

For your sake.

[Culpability Brown]

"You need a high powered microscope to tell the difference" between this months commentary and the last, is one great quote I read.

It's notable for 2 things: -

Firstly that even after 17 straight hikes the dollar weakens at the smallest hint of a pause in rate rises and secondly what state are world markets truly in when they are led by a short statement by the Fed.

What happened to reality and fundamentals? Oh yes they were abandoned long ago and for good reason when you consider the poor state they're in.

Edited June 30, 2006 by Culpability Brown