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Fed officials play down oil price risks
Yahoo ^ | 2/25/11 | Mark Felsenthal and Kristina Cook - Reuters

Posted on 02/25/2011 3:30:19 PM PST by NormsRevenge

NEW YORK (Reuters) – The Federal Reserve would react to higher oil prices only if the increases spilled over into broader areas, officials of the U.S. central bank said on Friday, with one policy maker calling the risks "manageable."

In a similar vein, an official of the European Central Bank said policy makers should be wary of responding too soon to the recent jump in oil prices as it may be fleeting.

Oil prices have risen as political tensions in the Middle East and North Africa have raised fears that the unrest could spread to other major oil-producing countries, stoking fears of even higher fuel prices and inflation risks around the world.

The president of the Richmond Federal Reserve Bank, Jeffrey Lacker, took a calm view of the potential threats to the U.S. economy from the higher oil prices, though he said they could prove nettlesome if they jump much more or create an inflationary psychology.

"I think the oil price rises we've seen so far don't pose a risk to the recovery," he told reporters after a speech on regulation.

"Oil price changes could have the potential, if they were very large, for slowing the recovery, but we have a lot of experience and a lot of data on past instances, and I think it's a manageable risk," he said at a conference organized by the University of Chicago's Booth School of Business.

Janet Yellen, the Fed's vice chair, said U.S. central bank officials would react if inflation expectations or underlying inflation show persistent gains and began to be reflected in other prices.

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Government
KEYWORDS: federalreserve; oil; price; risks

1 posted on 02/25/2011 3:30:23 PM PST by NormsRevenge
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To: NormsRevenge

They need to stop reacting. They’ve set the middle east ablaze already with their reacting


2 posted on 02/25/2011 3:33:50 PM PST by Christian Engineer Mass (25ish Cambridge MA grad student. Many younger conservative Christians out there? __ Click my name)
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To: NormsRevenge

Didn’t they also “play down” the risks of credit-default swaps and trillions of dollars worth of liar loans?


3 posted on 02/25/2011 3:35:02 PM PST by Steely Tom (Obama goes on long after the thrill of Obama is gone)
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To: NormsRevenge

“calling the risks “manageable.”

This person may be able to pay $5 plus for fuel...

But the rest of us, you make fuel $4, you got the recipe for anarchy , and it will be by both sides of the political spectrum, and they (the feds) damn well know it.

EL


4 posted on 02/25/2011 3:35:29 PM PST by Eureka_Lead (No political party has ever become a dictatorship when the citizens have firearms - Stay Vigilant)
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To: NormsRevenge

The White House wants $5 gallon gas. They are not going to do anything about this.


5 posted on 02/25/2011 3:36:57 PM PST by ColdOne (Your Tag Line Here.......inquire within)
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To: NormsRevenge

Obama and these idiots are all scared to death or they wouldn’t be trying this BS sham.


6 posted on 02/25/2011 3:37:03 PM PST by John W (Natural-born US citizen since 1955)
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To: John W

Well, in 0’s case may be not scared but giddy with anticipation.


7 posted on 02/25/2011 3:38:12 PM PST by John W (Natural-born US citizen since 1955)
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To: NormsRevenge

Not one single fed official can be trusted about anything. I can’t remember the last time a government spokesman said anything remotely true.

LLS


8 posted on 02/25/2011 3:40:52 PM PST by LibLieSlayer (WOLVERINES!!!)
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To: John W

They ar looking for any excuse to have zero call out his posse, a papercut by a union official on picket would have zero toss the hell and high water card, I believe the armed forces know it, I believe the local police and fema and any quasi govt with emergency powers knows this.

They know, if SHTF by zero, some of them are going to have to defend (note I did not use the A word) against their friends, brothers, neighbors.

I trust zero about as much as I trust the communist party is not seeking to dominate the United States of America.

EL


9 posted on 02/25/2011 3:44:03 PM PST by Eureka_Lead (No political party has ever become a dictatorship when the citizens have firearms - Stay Vigilant)
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To: NormsRevenge
I'm vacationing in Tampa, FL, and I've seen the price of gas jump 20 cents in the last 5 days.

Yeah, if I were a Pres of a Fed Reserve Bank, I don't think I'd concern myself with $4 or $5 gal either, but some of us make our living with trucks/vans and if anyone suggests that even $4 gal will not hurt our economy, they are clueless, morons or simply engaging in spin.

10 posted on 02/25/2011 3:46:49 PM PST by Conservative Vermont Vet ((One of ONLY 37 Conservatives in the People's Republic of Vermont. Socialists and Progressives All))
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To: Christian Engineer Mass

If doing nothing is reacting then what could be better than a do nothing President doing something that amounts to nothing.


11 posted on 02/25/2011 3:53:19 PM PST by hflynn
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To: NormsRevenge

“The Federal Reserve would react to higher oil prices only if the increases spilled over into broader areas, officials of the U.S. central bank said on Friday, with one policy maker calling the risks “manageable.””

And just what do they think they can do? NOTHING!

Short of the ME calming down and stabilizing the ONLY thing that the politicians could do would be to open ANWAR and the Gulf back up to drilling and possibly other places.

The mere speculation of new oil coming online in the future would drop the prices.


12 posted on 02/25/2011 4:03:15 PM PST by diverteach (If I find liberals in heaven after my death.....I WILL BE PISSED!!!)
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To: Eureka_Lead
But the rest of us, you make fuel $4, you got the recipe for anarchy

It's not just the price at the pump, but everything else that needs gas/oil to make it to market. Just got back from the grocery store and prices are going up. Last week, I could afford roma tomatoes at .82/lb. Today, I refused to pay $2.32/lb. for the same roma tomatoes, nor did I buy any yellow squash at $2.48/lb. I did stock up on an American brand canned veggies that hadn't gone up - yet. From the looks of the shelves, others had the same idea. The cashier asked who all I was feeding and was shocked how long it took to get to $100 (went over that but it took a while). I look at it like this, prices are going up but my income isn't. Throw in the shape of the world and yeah, I'm gettin' while the gettin's good.

13 posted on 02/25/2011 4:12:28 PM PST by bgill (Kenyan Parliament - how could a man born in Kenya who is not even a native American become the POTUS)
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To: Eureka_Lead
They ar looking for any excuse to have zero call out his posse, a papercut by a union official on picket would have zero toss the hell and high water card

Agreed.

14 posted on 02/25/2011 4:16:22 PM PST by bgill (Kenyan Parliament - how could a man born in Kenya who is not even a native American become the POTUS)
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To: NormsRevenge
The Federal Reserve would react to higher oil prices only if the increases spilled over into broader areas

OK, I must really be out of touch. When did the Fed start drilling for oil? Or, when will they?

Are they going to replace our money supply with cans of Penzoil?

15 posted on 02/25/2011 4:21:48 PM PST by stevem
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To: Christian Engineer Mass
2011 Tipping Points
16 posted on 02/25/2011 4:24:42 PM PST by FromLori (FromLori">)
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To: FromLori

Most of us analyst types are expecting a very large worldwide war in the period 2012-2017. It will involve nuclear weapons.
Nyquist, Sousken, and many others are in agreement of the war happening, but not the exact timing.


17 posted on 02/25/2011 4:37:03 PM PST by Thunder90 (Fighting for truth and the American way... http://citizensfortruthandtheamericanway.blogspot.com/)
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To: Steely Tom
They sure did and remember AIG? Well AIG paid back the FED but not the taxpayers and we own 92.1% of them and now they may be in trouble again...

Will AIG Implosion 2.0 Lead To QE 3.0?

18 posted on 02/25/2011 4:37:21 PM PST by FromLori (FromLori">)
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To: Thunder90

I could see that happening.


19 posted on 02/25/2011 4:40:10 PM PST by FromLori (FromLori">)
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To: NormsRevenge

In the meantime, local prices in Emmitsburg, Maryland jumped from $3.19 to $3.35 this afternoon.


20 posted on 02/25/2011 4:40:43 PM PST by Virginia Ridgerunner (Sarah Palin has crossed the Rubicon!)
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To: NormsRevenge

I’m sure the Fed can find a way to look more like mental midgets, but I’m not sure what it would be.


21 posted on 02/25/2011 4:41:38 PM PST by FourPeas (While the Dolores remained stranded, the president enjoyed a White House pop concert)
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To: NormsRevenge
The FED need not worry. Instead of their worthless paper money, the Saudis and others will demand gold for their oil.

Can we blame them?

22 posted on 02/25/2011 4:47:10 PM PST by unixfox (Abolish Slavery, Repeal The 16th Amendment!)
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