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FOMC Minutes

From the Jan 30 FOMC Minutes:

- saw need for relatively low interest for a time, but may need rapid reversal of easing once economy is stable
- Raises 2008 jobless forecast to  5.2-5.3% v 4.8-4.9% previous,
- Cuts 2008 GDP growth to 1.3-2% from 1.8-2.5% previous, 2.1-2.7% in 2009
- Fed official see growth risk to the downside
- Expects core inflation to moderate over the next 2 years, recent inflation data ‘disappointing’
- Saw chance of big rate cuts on earlier Jan meeting conference call, but no taken action, Jan 22 rate cut spurred by weak economy, market strains

 

The inflation data just keeps getting worse, as we saw today.  The Fed has raised the jobless forecast and lowered the GDP growth forecast.

Oil closes over $100 a barrel and the market rallies.  I think I just saw the Mad Hatter run by.