Fed is still concerned about inflation
#1
Posted 28 June 2007 - 01:17 PM
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent.
Economic growth appears to have been moderate during the first half of this year, despite the ongoing adjustment in the housing sector. The economy seems likely to continue to expand at a moderate pace over coming quarters.
Readings on core inflation have improved modestly in recent months. However, a sustained moderation in inflation pressures has yet to be convincingly demonstrated. Moreover, the high level of resource utilization has the potential to sustain those pressures.
In these circumstances, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.
#2
Posted 28 June 2007 - 01:25 PM
So many were betting on a big move up - maybe we end in negative territory??
just a wild guess - happy to be flat now ;-)
But darn Nasdaq is strong as people have pointed out here
For immediate release
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent.
Economic growth appears to have been moderate during the first half of this year, despite the ongoing adjustment in the housing sector. The economy seems likely to continue to expand at a moderate pace over coming quarters.
Readings on core inflation have improved modestly in recent months. However, a sustained moderation in inflation pressures has yet to be convincingly demonstrated. Moreover, the high level of resource utilization has the potential to sustain those pressures.
In these circumstances, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.
Edited by relax_dk, 28 June 2007 - 01:26 PM.
#3
Posted 28 June 2007 - 01:35 PM
Moreover, the high level of resource utilization has the potential to sustain those pressures.
This really bugs me know that they said this despite the horrendous sell off in the utilities the whole month...
#4
Posted 28 June 2007 - 01:36 PM
I went long minutes after and cashed out 3-4 points on NQ, I am also tempted to sell for another scalp, but I will wait until the June 3rd for anything bigger. I guess the market will just wiggle around here...
Micron reports after the close. Operating results should be awful, however, it depends upon so called future visibility. Unless, MU sandbagged their numbers last quarter and even refused to give any future guidance, there still should be no visibility until early next year.