Wednesday, March 21, 2007

surprised by this move

Everything is solidly higher after the Fed statement this afternoon. It doesn't make much sense to me -- the Fed acknowledges that troubles in housing are ongoing rather than stabilizing, but this isn't news. I'd be worried if they didn't see troubles as "ongoing." Moreover the Fed is still primarily concerned by inflation. It sounds like a hawkish statement to me.

I will be selling into this rally.

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