Reply #86: FOMC Minutes - 2006 growth forecast cut/inflation core raised [View All]

FOMC sees inflation risks rising

http://www.marketwatch.com/news/story.asp?guid=%7BB0E5D47A%2D341E%2D4F65%2DA77C%2DDB17B62F6DBA%7D&siteid=mktw

WASHINGTON (MarketWatch) - Federal Reserve policymakers just are not comfortable with the inflation outlook.

And some FOMC members wondered why financial markets weren't as concerned, according to a summary of the FOMC Aug. 9 meeting released on Tuesday.

According to the report, "most" FOMC members said inflation risks had "ticked up" over the summer, due to higher energy prices and an upward revision to inflation in the Commerce Department's benchmark revisions to the GDP data.

On the other hand, "many" other FOMC members argued that businesses could not raise prices because of low-wage goods coming into the U.S. from China and India, and as long as the FOMC continued hiking rates at a measured pace.

But the more concerned members of the FOMC said that core inflation was already running at the upper end of their acceptable range.

There was some sentiment on the FOMC that financial markets were not alert to the risk that the FOMC might be forced to become more aggressive if the inflation numbers turned ugly in coming months.

...more...

"Turned ugly"? Ewwww! I think we may be turning yet another corner :(

2:00pm 08/30/05 FOMC MINUTES: FED STAFF CUTS 2006 GROWTH FORECAST

2:00pm 08/30/05 FOMC MINUTES: FED STAFF SEES FULL EMPLOYMENT BY YR-END

2:00pm 08/30/05 FOMC MINUTES: FED STAFF RAISES CORE INFLATION FORECAST

2:00pm 08/30/05 FOMC: TIMING, EXTENT OF HOUSING SLOWDOWN UNCERTAIN

2:00pm 08/30/05 FOMC: MEMBERS SAW SIGNS OF COOLING IN HOUSING SECTOR

2:00pm 08/30/05 FOMC: SOME MEMBERS VIEWED MARKET INTEREST RATES AS TOO LOW

2:00pm 08/30/05 FOMC: SOME SAID MORE HIKES WOULD KEEP INFLATION IN CHECK

2:00pm 08/30/05 FOMC: SOME SAW CORE INFLATION AT UPPER END OF STABLE RANGE

2:00pm 08/30/05 FOMC: PACE, EXTENT OF FUTURE HIKES DEPENDS ON DATA

2:00pm 08/30/05 FOMC MINUTES: INFLATION RISKS 'TICKED UP' OVER SUMMER