Parsing the Fed

Tuesday, May 03, 2005 | 04:55 PM

It is Fed today. As usual, the WSJ's provides an excellent dissection of the Fed Statement:

WSJ: "THE FEDERAL RESERVE'S STATEMENTS reflect how the members of the central bank's Federal Open Market Committee perceive the economy. Their words have world-wide impact and the slightest changes are scrutinized for clues about where interest rates may be headed.

The May 3 statement, issued after the third meeting of the year, announced that the Fed was raising its key short-term interest rate by one-quarter point to 3.0%, its eighth increase in a row. The central bank showed more concern with oil prices affecting purchasing power, but didn't signal any plans to alter its current campaign of gradual interest-rate increases -- a change some were expecting. In a strange twist, the Fed at first omitted a key phrase on inflation from the previous statement - "Longer-term inflation expectations remain well contained." But then, late in the day, the Fed said the omission was a mistake and issued a revised statement. Below is a look at differences between the March statement and the May one. (Note: All bolding shown below appeared on the Fed statement.)

click for larger graphic


graphc courtesy of Online WSJ


Keeping the Pace
WSJ, May  3, 2005

Tuesday, May 03, 2005 | 04:55 PM | Permalink | Comments (0) | TrackBack (0) add to | digg digg this! | technorati add to technorati | email email this post



TrackBack URL for this entry:

Listed below are links to weblogs that reference Parsing the Fed:


The comments to this entry are closed.

Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      


Complete Archives List



Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:

Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo



Odds & Ends

Site by Moxie Design Studios™