Tuesday, January 31, 2006

FOMC: + 1/4 Point to 4.5%

"The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 4-1/2 percent."

"Although recent economic data have been uneven, the expansion in economic activity appears solid. Core inflation has stayed relatively low in recent months and longer-term inflation expectations remain contained. Nevertheless, possible increases in resource utilization as well as elevated energy prices have the potential to add to inflation pressures."

"The Committee judges that some further policy firming may be needed to keep the risks to the attainment of both sustainable economic growth and price stability roughly in balance. In any event, the Committee will respond to changes in economic prospects as needed to foster these objectives. "

2 comments:

  1. "Although recent economic data have been uneven, the expansion in economic activity appears solid."

    The expansion of economic activity is definitely NOT solid.

    1) Trade Deficit
    2) Federal Debt
    3) Negative Personal Savings Rate
    4) Housing Bubble
    5) Credit Bubble

    ReplyDelete
  2. about as solid as a goose down comforter. Who is kidding wjo here

    ReplyDelete