Tuesday, May 24, 2005
Fed governors are people too
I found this part of the FOMC's latest minutes amusing. Apparently, some governors are basing their monetary policy decisions because you just can't bet against the US economy.
Although downside risks to sustainable growth had become more evident, most members regarded the recent slower growth of economic activity as likely to be transitory. In this regard, the ability of the U.S. economy to withstand significant shocks over recent years buttressed the view that policymakers should not overreact to a comparatively small number of disappointing indicators, especially when economic fundamentals appeared to remain quite supportive of continued solid expansion.Well, at least we have reason to be optimistic that the current soft spot will be short-lived.