Tuesday, October 11, 2005

FOMC minutes shows FED Erring

Minutes of the September 20th Fed meeting http://www.federalreserve.gov/fomc/minutes/20050920.htm
released today showed that the Fed is still concerned about inflation and will most likely tighten at its next meeting. Members noted that Katrina would affect the economy but were "uncertain" about the consequences. They also downplayed the price of higher oil on the economy instead focusing on its inflationary consequences.

I disagree. The economy and the markets are under pressure and the Fed is adding to it. They erred on easing and now they are erring on tightening.

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