"The Committee perceives the upside and downside risks to the attainment of both sustainable growth and price stability for the next few quarters to be roughly equal."
Unhh.. Doesn't this mean the odds be 50/50 for sustainable growth and/or price stability over the next year +- ?
Leigh
----- Original Message ----- From: Doug Henwood To: lbo-talk Sent: Tuesday, December 14, 2004 11:36 AM Subject: [lbo-talk] FOMC statement
[same language as last time, which means no pause in the steady pace of tightening, but also no acceleration in the pace either]
<http://www.federalreserve.gov/boarddocs/press/monetary/2004/20041214/default.htm>
For immediate release
The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 2-1/4 percent. [...]
The Committee perceives the upside and downside risks to the attainment of both sustainable growth and price stability for the next few quarters to be roughly equal. With underlying inflation expected to be relatively low, the Committee believes that policy accommodation can be removed at a pace that is likely to be measured. Nonetheless, the Committee will respond to changes in economic prospects as needed to fulfill its obligation to maintain price stability.