"No – the Fed will resort this time not to inflation pressures, but to mortgage lending pressures. Lower interest rates – create subprime lending indirect - inflation. Fed Interest: Squash practices by INCREASING RATES cap-indirect inflation. Could come in faster than most people expect." -- Sebastian P.
"Hi. I didnt know we had to 'interpret' the Fed, given its high degree of transparency, we all know what he means, don't we?" -- Anders, TX
"Since mid Febuary, the stock market has been acting like a submarine with a screen door. Since the price of gas and food doesn't factor into the cost of living, the Fed will do just the opposite of what they should do. They'll raise rates." -- Bob D., Maryland
"The markets are doing exactly what the Fed wants them to do. Bernanke realizes that rate cuts may be necessary, but first he needs to quell any fears that his original objective is incomplete. He needs to slow his vehicle down first before putting it into reverse, and he believes the market interpretations got ahead of themselves last week. Simply put, odds of a summer rate cut should remain steady, but he will remain illusive until the moment is right." -- Scott B., Chicago, IL
"It isn't a question of 'misreading' the Fed. Rather, it's a question of whether the markets are responding as the Fed would like. The Fed recognizes it's dealing with a delicate balancing act and would prefer that the markets not become over confident with respect to potential Fed rate cuts. Therefore, to ensure inflation is more appropriately managed without raising rates the Fed is using the media and the markets to their advantage!" -- Paul P., AZ
"The Fed is always 6 to 9 months behind in their actions. The new captain has not changed this timing. The Fed has already missed the appropriate time to begin lowering interest rates." -- David T., Michigan