Wednesday, February 7, 2007

Fed President Yellen Warns On Inflation

From Reuters:

Fed speakers were out in force for the first time since voting on Jan. 31 to leave benchmark U.S. interest rates unchanged at 5.25 percent, as the traditional "cone of silence" after Fed policy-setting meetings was lifted.

Chairman Ben Bernanke focused on income inequality in Omaha, Nebraska, while 2007 Federal Open Market Committee voter Michael Moskow offered prescriptions for revitalizing the Chicago economy.

That left San Francisco Fed President Janet Yellen to deliver the policy message du jour at an event in Los Angeles.

Inflation "is a little higher than I would like it to be; I wouldb like inflation to come down," Yellen said in a question-and-answer session after a speech to the Asia Society of Southern California.

For the past 3-4 months, the Fed has been very consistent in their public statements on inflation. Every Fed president making a speech that deals with the Fed's inflation policy has had a similar statement. Inflation is still a bit above the Fed's comfort zone.

Can we stop talking about a rate cut now?