Fed indicates it will let inflation run

[tsptalk]

Fed Minutes trigger intraday pop...

Fed indicates it will let inflation run above 2 percent goal for 'temporary period'

https://www.cnbc.com/2018/05/23/fed...|finance|headline|story|&par=yahoo&yptr=yahoo

The minutes also pointed to an interest rate hike at the June meeting.

https://www.marketwatch.com/Story/s...-minutes-2018-05-23?&siteid=yhoof2&yptr=yahoo

 

[James48843]

So what does that tell you? What do you surmise is their thinking?

I think it bodes well, that they are thinking that the economy needs to grow a bit faster, and that this is an opportunity to slow the interest rate growth to allow business to crank up a bit more with slower rate rises. Maybe even saying that the Fed might consider slowing the pace of the rate rise, so that they can get a little hotter economy.

But then again, I may be way off base.


What do you think it means?

 

[tsptalk]

That must the the thought process for the rally, but according to the article,

".. traders in the fed funds futures market in recent days briefly put chances of a fourth hike above 50 percent. That probability has since declined to about 43 percent."

So not much of a difference.