The Hidden Gem in Today’s Federal Reserve Statement: Preparing for the Currency War

johngaltfla.com / by John Galt / January 28, 2015

Buried deep within the Federal Reserve’s Open Market Committee (FOMC) statement today was this gem which I feel has been misinterpreted by the financial blogosphere and especially or deliberately, the financial press. What is this gem and what do I feel it really means? Re-read this portion oftoday’s propaganda statement from the Fed and focus on the portion highlighted in red:

To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate. In determining how long to maintain this target range, the Committee will assess progress–both realized and expected–toward its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. Based on its current assessment, the Committee judges that it can be patient in beginning to normalize the stance of monetary policy. However, if incoming information indicates faster progress toward the Committee’s employment and inflation objectives than the Committee now expects, then increases in the target range for the federal funds rate are likely to occur sooner than currently anticipated. Conversely, if progress proves slower than expected, then increases in the target range are likely to occur later than currently anticipated.

What made that portion, and that portion only stand out to me was the fact that international developments such as the European Union’s pending Hellenic crisis, the Russian conflict with Ukraine, and upcoming expansion of Quantitative Easing to dilute the value of the Euro as a viable currency are not news nor anything that previously had concerned the Fed to any degree.