Wanna know why the market took a big giant nose dive at approxmiately 2:20 today?
The WSJ gives you a hint, in their now monthly parsing of the Fed:
I guess the market really didn’t like their use of the word "inflation."
"THE FEDERAL RESERVE’S STATEMENTS reflect how the members of the central bank’s Federal Open Market Committee perceive the economy. Their words have world-wide impact and the slightest changes are scrutinized for clues about where interest rates may be headed.The March 22 statement, issued after the second meeting of the year, announced that the Fed was raising its key short-term interest rate by one-quarter point to 2.75%, its seventh increase in a row, amid steady economic growth. While the Fed stuck to its pledge of "measured" rate increases, it also signaled a growing concern with inflationary pressures — though again observing that higher energy prices haven’t "notably" affected consumer prices. Below is a look at differences between the February statement and the March one."
PARSING THE FED
WSJ, Mar. 22, 2005