A quick look at the economy:
- Housing markets tanking; home prices falling
- Industrial output down for past 6 months
- Foreclosures rising
- Many businesses closing major facilities
- Thousands of factory and white collar employees "separating"
- Overall savings declining as a result of income not matching expenditures
- Stock markets are falling
Okay, Ben Bernanke has been patient with us long enough. If we are going to continue buying gasoline when prices go up just because we have to drive to work, then it is time for Ben to save us from ourselves and raise interest rates once again. We need a good old fashioned recession to show us how to live properly.
Well, what more does Ben want? It's time for action!What the Fed said: The Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.
Translation: The inflation rate could rise. That's definitely a possibility, although it's not a sure thing. If the Fed eventually needs to raise rates again to fight inflation, it will do so only after being convinced by the economic data.