Up or Down

The brouhaha continues over the Federal Reserve's statement.

For non-Nerds the Federal Reserve, those are the guys with the printing presses, decided to keep interest rates where they are. In the accompanying statement, however, they changed the language they use about future decisions.

For what its worth I believe that the firming bias was remove - the Fed isn't leaning towards raising rates anymore.

Yet, I believe this was a mistake. Not only has inflation been running high but inflationary expectations have been creeping up. There are those who are beginning to question whether the 90s was a fluke. The Fed needs to send a strong signal that price stability will be maintained in the face of temptation.