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Wednesday, April 09, 2008

The Fed reassures:

Minutes of the Federal Open Market Committee March 22, 2005:
[Oil Price: $55]

One source of upward pressure on inflation had been the rise in energy prices, and it seemed reasonable to expect that these prices would level out or even decline mildly ...
Minutes of the Federal Open Market Committee August 8, 2006:
[Oil Price: $70]

Moreover, while energy prices had risen further in the intermeeting period, energy prices could well level out in coming quarters.
Minutes of the Federal Open Market Committee March 18, 2008:
[Oil Price: $105]

Even with a substantial easing at this meeting, most members saw overall inflation as likely to moderate in coming quarters, reflecting a projected leveling-out of energy and commodity prices ...
Eventually, they'll get it right.



3 comments

That last one should be "Oil Price $100 (or so?)" shouldn't it?

By Blogger PseudoNoise, at 4/09/2008 10:04 PM  

pseudonoise: thanks for catching that. it was a copy/paste error. now fixed.

By Blogger Quiddity, at 4/09/2008 10:06 PM  

Eventually, they'll get it right.

No. No, I don't think they will. Well, maybe when it really starts running dry, and oil hits $500 a barrel or so, they might actually realise that the game is over.

By Anonymous Mike, at 4/10/2008 4:25 AM  

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