Ominous Signs at the Periphery IV

From March 23, 2005

Oil around $60, Commodities at 20 year highs, Gold at $440 and a crashing dollar and now the FED admits the inflation picture is troubling them..What a JOKE of a central bank...I feel sorry for those left holding the bag w/ all these bubbles floating around. I smell a Japan like deflation epicode once housing FINALLY cracks. Good luck.
Fed signals concern on inflation
By Andrew Balls in Washington
Published: March 22 2005 14:05 Last updated: March 22 2005 19:17

The US Federal Reserve on Tuesday signalled increased concern about inflation, as it again raised interest rates by a quarter point to 2.75 per cent.

The rise was widely expected, and the policymaking Federal Open Market Committee said it expected to continue raising rates at a “measured” pace, generally interpreted to mean quarter point increases.

But the central bank held out the possibility that it might have to move more aggressively to curb inflationary pressures, or at least to continue with quarter-point increases for longer than investors had been expecting.

“Though longer-term inflation expectations remain well contained, pressures on inflation have picked up in recent months and pricing power is more evident,” the statement said.

The FOMC said it saw the risks to growth and inflation as roughly equal. But, in contrast to its statement in January, it made clear that this judgment was based on “appropriate monetary policy action”.

Fed starts to look less less friendly

Quotable"Every previous major bear market has been accompanied by a bear market in home prices… A home price decline of as little as 20% would put a lot of people in bankruptcy."- John John Templeton, Equities Magazine, July 2003