THINGS ARE PERFECT, LET'S MESS THEM UP:

Robust retail, strong manufacturing encourage Fed (JEANNINE AVERSA, January 20, 2005, Chicago Sun-Times)

Shoppers and tourists kept sales people busy, factories for the most part hummed and the jobs picture brightened over the last few months, fresh signs that the economy is moving solidly ahead.

Those were some of the developments contained in the Federal Reserve's latest snapshot of economic activity, released Wednesday. The Fed's survey of business conditions around the country also suggested that inflation isn't currently a danger to the economy.

Eleven of the Fed's 12 regional districts characterized economic activity from late November through early January as expanding, the Fed survey said. [...]

Economic analysts are predicting that the Fed probably will boost a key short-term interest rate by one-quarter percentage point -- to 2.50 percent -- at that time.

The Fed report suggests that "the idea of measured tightening remains the order of the day," said Stuart Hoffman, chief economist at PNC Financial Services Group. "The Beige Book didn't signal more concern about inflation or about the economy. That's a perfect recipe for another quarter-point rate hike," he said.

Even Goldilocks had sense enough to lay down when she found a bed that was just right.

Posted by Orrin Judd at January 20, 2005 9:58 AM