The Federal Reserve adjusted its wording about inflation in its policy statement Wednesday, and
CNBC contributor Ron Insana thinks the change is a mistake.
"Although inflation in the near term will likely be held down by lower energy prices and other factors, the [Federal Open Market] Committee judges that the likelihood of inflation running persistently below 2 percent has diminished somewhat since early this year," the Fed stated.
And what was Insana's reaction?
"The Federal Reserve seems to have gotten a little more hawkish in its latest policy statement, suggesting that inflation may not remain below its target for much longer," he wrote on CNBC.com.
"I would heartily disagree. Deflation is most obviously a problem abroad." The Fed's favored inflation gauge, rose only 1.5 percent in the 12 months through August, below the central bank's target of 2 percent.
When it comes to interest rates, "I stand by rates staying lower for longer, which the data will bear out on inflation in the months ahead," Insana said.
Not everyone saw great significance in the Fed's statement.
"The exit [from easing] protocol has been so well documented for the last nine months that the market has fully priced it in," Barbara Cummings, a fixed-income portfolio manager for Boston Private Wealth Management, told The New York Times.
"I don’t anticipate any movement. I feel as though this is one meeting where they almost don’t need to hold it because they have made it perfectly clear."
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