Fed does it... creates... Stag-flation light theme

Text goes: 'The combination of generally weaker-than-expected economic indicators and uncomfortably high readings on inflation suggested downside risks to economic growth and greater uncertainty that the expected gradual decline in core inflation would materialize...'

WOW, WOOW and more WOW... This is Fed getting nervous about both growth and inflation at the same time.....Stag-flation light will be theme...

Note also 6 in 10 American expects recession in Bloomberg/La Times poll.... last time the ratio was this high was 2000... just before..... 2001... recession light...

This is no good... Market will try to read it positively... but it will be very hard....

The Minutes ALSO indicates how the "tossers" of Wall Street got the text all wrong post the meeting. Fed did not indicate cut..........so much for well paid inve. bankers in their Ivory towers...

More tomorrow... this is my early thoughts...

Med Venlig Hilsen Yours Sincerely Steen Jakobsen, Chief Investment Officer, Saxo Asset Management Saxo Bank A/S -London
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