Fedblitz

Fed governors have been painting the tape over the past
week or so with a variety of comments about inflation, the
economy and the US dollar. In some cases, perspectives and
conclusions differ.

This is an old Fed tactic. It grows out of resentment that the
Street, financial pundits and investment managers lately have been
on their necks like white on rice, following every word, exploring
every nuance and, sin of sins, have been trying to manage
Them by continually setting the stage and trying to lay down
the rules of engagement. It is a transitional economic environment
yet the players want the definitive word. So, the Fed puts out
lots of views instead. The message? Back off and do your own damn
homework.

The Fed is also running another little caper here. On balance,
their remarks have been hawkish on inflation, especially Bernanke's.
The game here is to intimidate the commodities markets by talking
tough and keeping them off balance. The Fed wants to verbally
squeeze the speculators for added effect to compliment a slowing
economy.