In a release issued today by the Board of Governors of The Federal Reserve System, were details on the Federal Open Market Committee (FOMC) statement following the September 17th-18th meeting.
Within the notes a few key statements on inflation were made, which may provide clues as to the directional “bias” of commodity and share markets this winter & spring.
Bernanke’s Fed indicated that inflation rates are simply not high enough, in that, “Mortgage rates have risen further and fiscal policy is restraining economic growth. Apart from fluctuations due to changes in energy prices, inflation has been running below the Committee’s longer-run objective, but longer-term inflation expectations have remained stable.”
The Fed further commented that, “The Committee expects that, with appropriate policy accommodation, economic growth will pick up from its recent pace…but the tightening of financial conditions observed in recent months, if sustained, could slow the pace of improvement in the economy…The Committee recognizes that inflation persistently below its 2 percent objective could pose risks to economic performance, but it anticipates that inflation will move back toward its objective over the medium term.” ...