Wednesday, October 31, 2007

Talkin' Tough: "We'll give you your 25 points, but don't expect any more."

This is what the Fed is trying to communicate in its FOMC statement release, just now appearing in my e-mails.

The crucial language is this:

"The Committee judges that, after this action, the upside risks to inflation roughly balance the downside risks to growth. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth."

[Thanks to Colbert and for the photo.]

Let the markets be forewarned.

On the other hand, how much would you like to bet that the Fed will pony up any credit the whiners need, as soon as push comes to shove.

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Anonymous Anonymous said...

The Fed is going to do whatever it takes to please the markets!

Then too, the Fed may be all-to-aware of problems in the banking biz that those of us in the public don't know about. Big systemic and insolvency problems maybe.

In light of inflation data, strong GDP, and falling dollar - they cut rates. That says to me that they are scared witless.

BTW this is the long-lost Idaho_Spud - I've been lurk mode lately ;) No time to log onto blogger at the moment.

3:55 PM  
Blogger Katy said...

Hey Idaho! Welcome back.

4:03 PM  

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