Fed official peruses economic cycles

Article Abstract:

Federal Reserve System's Federal Open Market Cmte member Robert Parry stressed the need for constant vigilance against inflation despite the economy's continuing robustness. He believes that a lot of indicators suggest that the economic boom is not merely a cyclical development but is assuming a more enduring characteristic, yet to sustain the boom requires a continual acceleration of productivity. Parry believes that the economy can grow at a 4% rate without triggering inflation.

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Federal Reserve has to be tricky to be transparent

Article Abstract:

The Federal Reserve is trying to be more transparent with its policy decisions so that financial markets can anticipate the Fed's likely actions, according to Vice Chmn Roger Ferguson. This attitude may rob the Fed of its power of surprise but it is better when markets remain tranquil if they know what to expect from the Fed. Observers say that it is easy to predict that the Fed will raise interest rates since it is always concerned with inflation and an overheated economy.

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Mixed economic reports create fog-filled picture of Fed future

Article Abstract:

Economists are uncertain whether the Federal Reserve will decide to increase interest rates at its Aug 22 meeting. Economic indicators show conflicting signals indicating that the Fed's goal of slowing the economy is not being achieved. Wages and benefits increased 1.0% in the April-June quarter while orders for major durable goods rose 10% in June. Weekly claims for new unemployment benefits dropped by 40,000 to 272,000, significantly lower than the 300,000 expected by economists.

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