Posts Tagged ‘Osborne’

Notes From Underground: The Fed breaks new ground

June 23, 2010

The FOMC press release did not surprise anyone except some financial television pundits. However, there are two items that are new as we do our scatalogical analysis of the entrails of FED SPEAK. First is the following line:

“Financial conditions have become less supportive of economic growth on balance,largely reflecting developments abroad.”

This is the only time we can remember the Bernanke Fed explicitly stating its concern about events outside the U.S. Yes, we know the FED extended its DOLLAR SWAP LINES last month but we can’t remember anything alluding to weakness abroad as a reason to maintain a soft FED policy. Furthermore, the FED added the words, “prices of energy and other commodities have declined in recent months.”