Wednesday, January 27, 2010

Dissension in the ranks, the market tanks (I'm a poet!)

The Federal Open Market Committee (FOMC) meeting minutes were released a couple minutes ago, sending the market sharply lower.

Nothing about the commentary was terribly surprising.  They cited improvement in the direction of the economy, and said that the fed funds rate would remain at 0-.25% for the foreseeable future.

What's got the market nervous about sooner-than-expected raise increases is that unlike the December minutes, this time there was a dissenter:

"Voting against the policy action was Thomas M. Hoenig, who believed that economic and financial conditions had changed sufficiently that the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted."

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