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Tuesday, December 12, 2006

FOMC chatter going on

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A lot of FOMC chatter surrounds Richmond Fed Pres Lacker, the dissenter at the last 3 FOMC meetings who wants more tightening.

Today's meeting will be "Lacker's last vote" since he goes back to nonvoting status in January with the annual rotation of Fed Presidents.

Lacker has 'painted himself into a corner' -- if he fails to dissent, it would be seen as a dovish signal to the mkts.
That is not what the Fed should signal given their recent warnings and upbeat economic data

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