Re: Bernanke's comments

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Posted by warren mosler (208.49.176.241) on 20:51:14 11/14/07

In Reply to: Bernanke's comments posted by Mike Norman

: Warren,
:
: Has the Fed switched to targeting headline inflation and if so, what are the implications?

Hi Mike, in theory headline has always been 'real inflation' as Bernanke also said in a speech last summer.

This latest statement I'm thinking is meant to indicate that right now the Fed is not planning a cut Dec 11, and they would like to see the Jan fed funds contract price itself accordingly. So far it's still showing a very high chance of a cut.

The data would have to be considerably worse than Fed expectations for a cut.

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Subject:	Re: Bernanke's comments
Comments:	: : Warren, : : : : Has the Fed switched to targeting headline inflation and if so, what are the implications? : : Hi Mike, in theory headline has always been 'real inflation' as Bernanke also said in a speech last summer. : : This latest statement I'm thinking is meant to indicate that right now the Fed is not planning a cut Dec 11, and they would like to see the Jan fed funds contract price itself accordingly. So far it's still showing a very high chance of a cut. : : The data would have to be considerably worse than Fed expectations for a cut. :
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