FOMC Minutes As Ugly As It Gets…Ya Right.

Posted on April 8th, 2008 in Daily Stock Market / Economic News - The Real Story

This FOMC Minutes release is as ugly as it
gets for today. The Fed essentially said they HAD to cut, the US economy is in major slowdown mode with major
inflationary pressure. Surprise! STAGFLATION! Bernanke has said that many time if you would have listened. You could have learned this would
happen in any high-school economics class. – Mr Mortgage

WASHINGTON (MarketWatch) – Behind closed doors last
month, top Federal Reserve officials confronted new projections of a sharp and
severe slowdown, leading them to brush aside worries about rising prices and cut
rates aggressively, according to minutes of the meeting released Tuesday. The
majority of FOMC members said the substantial easing in March was justified
given the deteriorating economic outlook, the minutes said. No one seemed in any
way comfortable with recent rising prices. But the majority said it still viewed
a moderation in price increases later in the year as likely. There had been no
real wage gains, they noted. The decision provoked a sharp dissent from two of
the Fed’s most hawkish regional bank presidents. Philadelphia Fed president
Charles Plosser and Dallas Fed chief Richard Fisher both warned that the public
was beginning to think that rising prices were here to stay and this sentiment
would be strengthened with another aggressive rate cut.

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B28F407EB%2D2226%2D4BAD%2D8D38%2DB6B78466241B%7D&siteid=mktw

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