数据决定

	Economic growth has been quite strong so far this year. The Committee sees growth as likely to moderate to a more sustainable pace, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices. As yet, the run-up in the prices of energy and other commodities appears to have had only a modest effect on core inflation, ongoing productivity gains have helped to hold the growth of unit labor costs in check, and inflation expectations remain contained. Still, possible increases in resource utilization, in combination with the elevated prices of energy and other commodities, have the potential to add to inflation pressures. The Committee judges that some further policy firming may yet be needed to address inflation risks but emphasizes that the extent and timing of any such firming will depend importantly on the evolution of the economic outlook as implied by incoming information. In any event, the Committee will respond to changes in economic prospects as needed to support the attainment of its objectives.

	Boston, May 10.   In a unanimous decision, the Fed has lifted the funds rate by another 25 bps to 5.00% but left in its intent to address inflation risks as appropriate.  The    size and timing of additional moves, if any, would depend on data.  The          statement is fairly balanced but definitely leaves the door open to another hike at the June 29-30 meeting.                                                           The statement introduced the lag effect in policy, echoing comments from Fed officials over recent weeks.  Deceleration in house prices was also mentioned as a restraining factor on economic growth.  The Committee already accepts the      economy is likely to slow to a more sustainable pace.                                While oil prices were said to be having "only modest" impacts on inflation, voters said energy prices have the potential to induce inflation.  Similarly,    higher rates of resource utilization pose a risk to price stability.                 The market seemed to be holding its breath for a more dovish statement.      Odds of a 25 bps hike at the end of the June meeting rose from 32% before the    statement to 42% after.  Retail sales (Thursday at 12:30) are the next economic event to warrant close inspection, while any piece of the inflation puzzle       (e.g., PCE deflator, capacity use, the unemployment rate) will be used to deduce the Fed's next move.