Dissecting Fed comments

The above piece appeared in the Wall Street Journal comparing yesterday's Fed statement from that of May. Personally I think investors look for clues as to the state of the economy in their daily lives rather than trying to detect nuances in the Fed's comments. For example they might notice that mortgage rates are higher and that loans are harder to get. Or that the price of food and gasoline is increasing.

Anyhoo I found an interesting interpretation of the Fed's comments from Irwin Kellner which the WSJ either missed or that doesn't really exist. Kellner thinks that the line:

"However, a sustained moderation in inflation pressures has yet to be convincingly demonstrated"

means that the Fed is now paying attention to the headline inflation number and not just the core. That kind of makes sense since people do have a tendency to eat and drive cars. There was an interview with Irwin Kellner on this topic yesterday but it seems to have vanished from marketwatch.com. I'll link it in if it reappears.