FOMC
[this is more hawkish than I expected, though I don’t know what the
market thinks, to whose wisdom I would, of course, have to defer -
they’re still more worried about inflation and low unemployment
(euphemized as “the high level of resource utilization”) and don’t
seem worried about the financial markets freaking out, regardless of
what that lunatic Jim Cramer thinks]
http://www.federalreserve.gov/boarddocs/press/monetary/2007/20070807/default.htm
For immediate release
The Federal Open Market Committee decided today to keep its target
for the federal funds rate at 5-1/4 percent.
Economic growth was moderate during the first half of the year.
Financial markets have been volatile in recent weeks, credit
conditions have become tighter for some households and businesses,
and the housing correction is ongoing. Nevertheless, the economy
seems likely to continue to expand at a moderate pace over coming
quarters, supported by solid growth in employment and incomes and a
robust global economy.
Readings on core inflation have improved modestly in recent months.
However, a sustained moderation in inflation pressures has yet to be
convincingly demonstrated. Moreover, the high level of resource
utilization has the potential to sustain those pressures.
Although the downside risks to growth have increased somewhat, the
Committee’s predominant policy concern remains the risk that
inflation will fail to moderate as expected. Future policy
adjustments will depend on the outlook for both inflation and
economic growth, as implied by incoming information.
Voting for the FOMC monetary policy action were: Ben S. Bernanke,
Chairman; Timothy F. Geithner, Vice Chairman; Thomas M. Hoenig;
Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; Michael H.
Moskow; William Poole; Eric Rosengren; and Kevin M. Warsh.