Archive for May, 2007
FOMC Minutes May 9th Meeting
Outlook for growth improves for 2008 Uncertainties for inflation remain elevated Fed rates will remain steady at 5.25% Outside risks to growth diminish while upside risk to inflation remain high Positive influences within growth outweigh negative risks, causing GDP growth for 2008 to be revised upward. During the previous meeting, the growth rate was given as “a rate a little below that of the economy’s long run potential;” however, May’s meeting saw growth being revised to “increase at a pace
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FOMC May 9th Meeting
Fed held the fed funds rate steady at 5.25%; made minor changes to the policy statement The wording remains hawkish: reiterated that inflation is the predominant policy concern Statement retains hawkish bias; signals that the Fed will remain on hold for several meetings The FOMC kept the fed funds rate steady at 5.25% for the seventh consecutive meeting. As we anticipated, there were changes in the paragraphs on growth and inflation; but more importantly, and also as we expected, the policy
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FOMC May 9th Meeting
FOMC statement will likely signal more uncertainty The statement will retain its implicit bias toward tightening, but probably slightly less than the previous The statement will likely signal more concern on the downside risks to growth, along with continued concern about inflation Paragraph on growth: we think that the paragraph could be modified to allow for weaker data and increased downside risks to economic growth. In particular, the wording will probably add a reference to a major area
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