Wednesday, April 08, 2009

Did FOMC Minutes Whisper: "Deflation"?

Are they crazy? The equity markets are rallying for a month, but the US central bankers at FOMC have been whispering "deflation"? The excerpt here:
Participants saw little chance of a pickup in inflation over the near term, as rising unemployment and falling capacity utilization were holding down wages and prices and inflation expectations appeared subdued. Several expressed concern that inflation was likely to persist below desired levels, with a few pointing to the risk of deflation.

Well, it tames the intra-day bull for a moment...

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