What is the Fed hiding?

The Federal Reserve pleasantly surprised the bond market late last month by indicating it was in no rush to raise short-term interest rates. In a statement following the policy-setting committee's meeting, it acknowledged the strength in economic activity, largely the result of the swing in inventories, believe officials, and said the outlook for final demand was uncertain and risks to the economy balanced between weaker economic growth and higher inflation. The Fed elected to leave the federal funds rate unchanged at 1.75%. There was something awkward about the construction of the s...