Lanier Financial Group

Yesterday we ushered in a new era-- The Warsh Fed. At 2PM the Fed released the minutes from the first meeting with Chairman Warsh and you can see the kneejerk reaction from the markets. Red line is SPY (S&P 500) and blue line is US 2 year treasury. While the minutes signal a incoming rate hike (or two) it appears the Warsh Fed will not be backing themselves into a corner on their forward looking statements or rigid self-imposed rules (ie 2% inflation target... not 2.5%, not 2.3%..... just 2%).