Quarter Point and a Correction After Release

The Federal Reserve raised the rates a quarter point today, the eighth time in a row they've raised rates. The Federal Funds Target Rate is now 3%. That was expected.

What wasn't expected was a late-day change to the released report adding this sentence to the second paragraph:

Longer-term inflation expectations remain well contained.

This statement was included in the four previous statements, and its omission from today's report was an error. The street had already started buzzing because it was missing…

Who says little words don't count?

Observers have watched the Fed reports closely to spot indicators of deflated consumer confidence or inflated consumer prices. Every sentence has a clear meaning to the analysts on Wall Street.

Josh Poulson

Posted Tuesday, May 3 2005 02:19 PM

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Have you ever heard the "What Did the Fed Chief Say?" game show on NPR? They play short clips of Greenspan and callers try to interpret the real meaning behind his words for prizes.


Posted Tuesday, May 3 2005 03:58 PM

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