1 reply to this topic

[tommyt]

fed time draws near...will the real market mover please stand up, I mean, open your mouth...

[ChickenLittle]

Morning news, "and a gauge of inflation watched by the Federal Reserve was unexpectedly revised up." All U.S. wars cause inflation (commodity surges, etc), so when the Iraq war stops influencing the budget, inflation will fade away. If the Fed relaxes and the war continues on (how can it???), inflation will grow worse and the Fed response will be greater than ever. During the 1970's the Fed never had the will to go the extra step to strangle the economy. Volcker came along with the will and the tools, of course the war was over by then. All bets are on the war winding down, hopefully that will be true so the Fed will be free to do their thing.