In tonight's WSJ, Grep Ip had this to say about the Fed:
The Federal Reserve might be wise to avoid saying whether weak growth or inflation is the principal focus of its interest-rate deliberations, a Fed policy maker said....
Federal Reserve Bank of Philadelphia President Charles Plosser said in an interview the Fed's practice of publicly assessing the "balance of risks" between growth and inflation may convey too much confidence about where it thinks interest rates are headed. "The circumstances have focused my attention on this language issue, particularly the balance of risks, and I suspect people are struggling right now with, 'Okay, maybe we have to think through this a little more carefully than we had before,'" he said....
...Still, Mr. Plosser's comments suggest policy makers are grappling with how they communicate after four months in which markets have often struggled to discern the Fed's message.
The rest of the interview made me gag. Read it here:
At least the ECB said they would have unlimited funds available for European financial institutions at a maximum rate of 4.21%. And at these levels, stock prices are even pricing in the public musings of the Fed.