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FBN’s Peter Barnes on the Fed announcing no changes to its policies but reporting energy prices led to a recent rise in inflation.
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As I was saying earlier in the Fed -- simply queued up its announcement from the last meeting for this one.
Today's statement in -- -- Peter Barnes almost identical except for one small line.
Yes Liz eagle -- claimant that.
And combing through the statement absolutely right -- ironic question -- say -- -- business I had canceled easily.
Well welcome to the peak club that we love it here.
Liz and Peter are -- dot com what to pump up at.
Federal Reserve statement from the meeting in September said inflation has been -- -- -- subdued although the prices of some key commodities have increased recently.
Today's statement.
No made mention of inflation subdued it was just flat out inflation recently picked up somewhat.
Reflecting higher energy prices so my colleagues in the and the treasury press room where we get the statement.
We all noticed that the change in the language.
But then the the FOMC continued with longer term inflation expectations.
Have remained.
Remained stable same as the September statement manager called the number -- -- the prop the show that's when they launched.
QE3.
Announced they would continue Operation Twist to the end of the year and no change in any of that as well as given interest rates short term fed -- rate.
Zero to a quarter percent then.
Exceptionally low through mid -- 4015 so no change in policy either but that's slight change in wording on inflation.
Which the Fed has to acknowledge because of the dual mandate.
-- great jobs and keep inflation well.
Right and you know the average price of gasoline has dropped about eight pennies over the past two weeks so it -- they might -- Hello on the uptick there right.
Yeah and -- -- And the Fed does that.
Chairman Bernanke and his press conference and other FOMC officials and fed.
Official that we talk to.
All talk about gasoline and energy prices being volatile up and down and and they do keep that in mind is this setting policy.
Hence the core rate which excludes the often volatile food and energy Peter thank you thank you so much.
I'm getting people out yes -- listen Peter.
