Wednesday, April 11, 2007

The Markets Today

The markets did not like the FOMC minutes. Guess when they sold off?

The Fed basically said inflation was still an issue. Of course, the Fed has been saying that for the last three months but the market has had a wonderful sense of denial going on. So, the Fed clarified again: "No, really, inflation is a big issue for us right now. In fact, we might actually raise rates if the situation gets any worse."

Actually, the Fed was a tough more formal:

Participants agreed that risks around the expected and desired path of a gradual decline in core inflation remained mainly to the upside; some noted that upside risks to inflation appeared to have increased slightly in recent months.


I think the markets finally got the message

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