Thu 12 Apr 2007
From Bloomberg:
Federal Reserve officials agreed last month that higher interest rates could still “prove necessary” even as they removed a reference in their policy statement to tighter credit.
And here’s the definition of jawboning:
…to attempt to influence or pressure by persuasion rather than by the exertion of force or one’s authority, as in urging voluntary compliance with economic guidelines…
If anyone still thinks that the Fed is trying to control inflation — they’re not.? They’re primarily interested in controlling inflation expectations.? Hence all the jawboning.