Fed Members Saw Inflation Above `Desirable' Level, Minutes Show

[sabra]

http://quote.bloomberg.com/apps/news?pid=10000006&sid=aI9cFe8sOMhw&refer=home

Fed Members Saw Inflation Above `Desirable' Level, Minutes Show

Feb. 21 (Bloomberg) -- Federal Reserve policy makers, in Chairman Alan Greenspan's last interest-rate meeting, said more rate increases may be needed because inflation has been ``somewhat higher'' than acceptable, minutes of the session showed.

``In the view of some members, the possibility of additional policy moves was reinforced by readings on core inflation and inflation expectations that were somewhat higher than was desirable over the long run,'' the Federal Open Market Committee said in documents released today in Washington.

The Fed is nearing the end of the longest cycle of interest rate increases in a quarter-century, and investors are looking for signs of when the Fed may stop. Greenspan's Fed voted unanimously on Jan. 31 to raise the main U.S. rate for the 14th straight time, to 4.5 percent, and said more increases ``may be needed'' to keep inflation under control. Ben S. Bernanke, who became chairman Feb. 1, told Congress last week he agreed with that view.

``All members agreed that the future path for the funds rate would depend increasingly on economic developments and could no longer be prejudged with the previous degree of confidence,'' said the minutes, released with the Fed's customary three-week lag.

[Viva_La_Revolution]

1. oh yea... things are just fine. nt

[Demeter]

2. You Ain't Seen Nothing Yet

Can you spell mandate? I thought you could.

[FloridaPat]

3. But we have no inflation! Take out food and gas prices and everything

is hunky-dory here. And since they've revised the job reports for a full 5 years, even the job market is good. Now if I could just find a job in this great market