>On Wed, 30 Jun 2004, Doug Henwood wrote:
>
>> The Committee perceives the upside and downside risks to the
>> attainment of both sustainable growth and price stability for the
>> next few quarters are roughly equal. With underlying inflation still
>> 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.
>
>So, if I can translate econo-speak accurately, they want to
>throw more people out of work to keep wages (and thus
>the risk of inflation) under control. Or am I being too cynical?
Not yet. We're not at that point. Labor markets are still too slack.
Doug