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CPI News And Impact To Fed's Monetary Policy

Thursday, June 17, 2010 - 1:53 PM
Signs of lower inflation and weaker job reports are likely to give the Fed reason to delay any changes in its monetary policy. This Washington Post article has a good overview of this. Here are a few excerpts:
Consumer prices fell 0.2 percent in May, the Labor Department said Thursday. The department said Wednesday that wholesale prices fell 0.3 percent.

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As for monetary policy, the Fed is likely to keep its target for short-term interest rates unchanged near zero and restate its intention to leave rates low for an extended period, even as it readies plans to abandon that stance in the future.

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Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
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