tangent4ronpaul
04-05-2011, 01:04 PM
http://online.wsj.com/article/SB10001424052748703806304576244950071553400.html
Federal Reserve officials judged that the U.S. economy was gaining traction when they met three weeks ago, but highlighted the potential negative impact of rapidly rising commodity prices on inflation expectations, consumer spending and business investment.
"A significant increase in longer-term inflation expectations could contribute to excessive wage and price inflation, which would be costly to eradicate," the Fed said in minutes from its March 15 meeting, released with the customary lag on Tuesday.
At the meeting, the Fed maintained its easy-money policies while offering reassuring words about the economic outlook and signaling vigilance on inflation.
Officials at the meeting indicated increasing energy and commodity prices had fed a recent boost in headline inflation, but expected that rise to be temporary. They showed some concern, though, that businesses and consumers may not feel the same way.
...
Federal Reserve officials judged that the U.S. economy was gaining traction when they met three weeks ago, but highlighted the potential negative impact of rapidly rising commodity prices on inflation expectations, consumer spending and business investment.
"A significant increase in longer-term inflation expectations could contribute to excessive wage and price inflation, which would be costly to eradicate," the Fed said in minutes from its March 15 meeting, released with the customary lag on Tuesday.
At the meeting, the Fed maintained its easy-money policies while offering reassuring words about the economic outlook and signaling vigilance on inflation.
Officials at the meeting indicated increasing energy and commodity prices had fed a recent boost in headline inflation, but expected that rise to be temporary. They showed some concern, though, that businesses and consumers may not feel the same way.
...