Through TheFLY's Eyes: U.S. Federal Reserve

from Theflyonthewall.com














Another Well Thought Out Statement By The Fed

The Fed statement focuses on important issues regarding the economy and inflation:

Positive Points For Halting Rate Increases:
- Growth moderating
- Housing weakening
- Productivity gains strong
- Inflation expectations contained

Negative Point For Raising Rates:
- Resource utilization still high (the Fed wants to see lower commodity prices)

The Fed mentioned future policy changes will remain data dependent, but the Fed has two months of data to digest before the next meeting. The positive points for a halting of rate increases outnumber the points for further interest rate increases. This clarity and a bias towards less tightening is driving stocks higher.