good point NFX... i just reread the statement a few more times and it does seem they have shifted toward the growth side of the mandate (btw, i do realize its a dual mandate, i just mentioned inflation because worked better with the point i was making: ).
anyway, here is the statement...
of course they announced the discount rate cut at the same time (or did discount rate come after?). initially i thought the discount rate was the response to "prepared to act as needed". but after further review, i do see how this can be the signal of lower fed funds.
thanks for making me think!
anyway, here is the statement...
QuoteDislikedFinancial market conditions have deteriorated, and tighter credit conditions and increased uncertainty have the potential to restrain economic growth going forward. In these circumstances, although recent data suggest that the economy has continued to expand at a moderate pace, the Federal Open Market Committee judges that the downside risks to growth have increased appreciably. The Committee is monitoring the situation and is prepared to act as needed to mitigate the adverse effects on the economy arising from the disruptions in financial markets.
of course they announced the discount rate cut at the same time (or did discount rate come after?). initially i thought the discount rate was the response to "prepared to act as needed". but after further review, i do see how this can be the signal of lower fed funds.
thanks for making me think!
Relax and be happy.