Pento: “We all knew that the Fed suffers from acute schizophrenia, but let’s take a look at what their statement really said today. Of course there was no change in the amount of bond purchases. They are still doing $85 billion every month.
But the Fed downgraded the outlook for inflation. The outlook was for 1% inflation for the totality of 2013. At the Fed’s last meeting in March, the outlook was for 1.5% inflation. So they lowered their outlook for inflation which is half of their mandate.
They then said, ‘The risks to rising unemployment have diminished.’ They mad that bold claim even though the unemployment rate was up last month….