The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period. The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to promote economic recovery and price stability."
Goldilocks continues on.The P.I.G.S. are falling apart, the euro is exposed as the toilet paper that it is and the Fed continues to pretend that inflation 'expectations' are stable. Well, that is debatable, but what is not debatable is the inflation that was pumped into the system, which continues to manifest in asset price increases.
Scared money seeks out USD and gold as safe havens when the 'Markets Down on Greek Fears' headlines show up and then flow back into risk assets when the 'Markets Up on Easing Greek Fears' headlines invariably follow. Meanwhile our heroes at the Fed take advantage of the appearance that we are on some kind of conventional recovery.
We will ultimately have...
a) Recovery born of inflation, with associated fears breaking out soon enough or
b) The 'UNrecovery' as I believe Michael Panzner called it.
