The Atlanta Fed's macroblog provides commentary and analysis on economic topics including monetary policy, macroeconomic developments, inflation, labor economics, and financial issues.
- BLS Handbook of Methods
- Bureau of Economic Analysis
- Bureau of Labor Statistics
- Congressional Budget Office
- Economic Data - FRED® II, St. Louis Fed
- Office of Management and Budget
- Statistics: Releases and Historical Data, Board of Governors
- U.S. Census Bureau Economic Programs
- White House Economic Statistics Briefing Room
June 06, 2006
The Hawk Becomes The Pheonix
Ben S. Bernanke, chairman of the Federal Reserve, warned Monday that recent inflation trends were "unwelcome developments," indicating that he was far less worried about signs of weaker economic growth than about the danger of higher prices.
I added the emphasis there, as I did read the speech, and confess I couldn't quite find where he said he was "far less" worried about economic growth. To be fair, an impartial observer might infer that this does represent the Federal Open Market Committee's general orientation, based on the change from this language in the press statement following the March meeting...
The Committee judges that some further policy firming may be needed to keep the risks to the attainment of both sustainable economic growth and price stability roughly in balance.
... to this language in the statement following the May meeting:
The Committee judges that some further policy firming may yet be needed to address inflation risks...
Of course, everyone knew this last week when the May employment numbers sent expectations of another rate hike in June into a skid. Apparently, on Friday those numbers made operative this clause in the May statement...
The Committee... emphasizes that the extent and timing of any such firming will depend importantly on the evolution of the economic outlook as implied by incoming information.
... and just as apparently market participants believe the invoking of that clause was revoked by the Chairman in his comments on Monday. Again from the New York Times:
In his toughest comments yet about the risks of inflation, Mr. Bernanke said consumer prices were rising faster than he would like. He gave short shrift to evidence of a slowdown in hiring, and he conspicuously avoided repeating his earlier suggestion that the Fed might consider a "pause" in its two-year program of steady interest rate increases.
The story, from prices on options for fed funds futures:
I know I said I would stop posting these things unless something interesting happens, but, by golly, interesting things just keep happening.
The data from the above picture, as is always the case now, are available from the Cleveland Fed.
TrackBack URL for this entry:
Listed below are links to blogs that reference The Hawk Becomes The Pheonix:
- Was May's Drop in Labor Force Participation All Bad News?
- Wage Growth for Job Stayers and Switchers Added to the Atlanta Fed's Wage Growth Tracker
- Experts Debate Policy Options for China's Transition
- It’s Not Just Millennials Who Aren't Buying Homes
- After the Conference, Another Look at Liquidity
- Moving On Up
- Putting the Wage Growth Tracker to Work
- Can Two Wrongs Make a Right?
- Are People in Middle-Wage Jobs Getting Bigger Raises?
- GDPNow and Then
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- November 2015
- October 2015
- September 2015
- August 2015
- Business Cycles
- Business Inflation Expectations
- Capital and Investment
- Capital Markets
- Data Releases
- Economic conditions
- Economic Growth and Development
- Exchange Rates and the Dollar
- Fed Funds Futures
- Federal Debt and Deficits
- Federal Reserve and Monetary Policy
- Financial System
- Fiscal Policy
- Health Care
- Inflation Expectations
- Interest Rates
- Labor Markets
- Latin America/South America
- Monetary Policy
- Money Markets
- Real Estate
- Saving, Capital, and Investment
- Small Business
- Social Security
- This, That, and the Other
- Trade Deficit
- Wage Growth