Minutes of the Sept. 20 closed-door discussions revealed increased worries among Fed policy-makers about inflation due to a spike in the price of gasoline and other energy products following hurricane-related production shutdowns caused by Katrina. But the Fed officials said they believed the hit to economic growth from Katrina would prove to be temporary.
Because of this view, the Fed expressed concerns that not raising rates at the September meeting would send the wrong signal about the Fed's view of the underlying soundness of the economy.
"A pause in policy tightening at this meeting had the potential to mislead the public both about the committee's perceptions of the fundamental strength and resilience of the economy and about its commitment to fostering price stability," the minutes stated.
**for once I am speachless!
D
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1 comment:
LOL,,good one D kept up the good work.
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