Most important sentence: “The Committee currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013.” Economic growth so far this year has been considerably slower than the Committee had expected.

Three dissenters!!!

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China Consumer Price Index was up 6.5% in July, vs. 6.4% consensus and 6.4% June reading. Food inflation jumped 14.8%, up from June’s 14.4%. The government’s target for the year was at 4%.

China Producer Price Index was up 7.5% vs. 7.5% consensus and 7.1% June reading. This suggests rising CPI.

Difficult position for China, the economy is slowing down and inflation is rising.

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