A Fly on the Wall

You know, we heard the policy statement today and we'll get to read the meeting minutes in about six weeks, but wouldn't it have been fun to be a fly on the wall at today's Fed Policy Meeting?

Those able to read body language surely could have learned something by watching the assembled board members. Was anyone squirming in their chair, or shaking their head, or did anyone raise their eyebrows as others spoke?

How about more overt non-verbal communication? Did anyone, at any point, giggle or knock on wood? How about the hang-loose/hook 'em horns thumb/pinky wiggle/wave which when steadied and applied to one side of the head means "Al, call me"? Did anyone do a Vulcan salute or ... how about the dreaded loose fist (all fingers forming a cylindrical shape) which is then shaken up and down at the wrist? The Brits have a word for this ... now, what is that?

And what of the late correction to the policy statement where they initially left out the line "Longer-term inflation expectations remain well contained"? Was there some off-the-record discussion about this being perceived as a Freudian slip? That their subconscious minds were telling them to tell the world that they are now so far behind the inflation curve that their only recourse will be to again revise the inflation calculations to ensure that inflation stays under control?

Let's see, Donald Kohn was there. Do you think any of the other board members coughed strangely when he spoke? His most recent speech about imbalances in the economy had this gem:

The current imbalances will ultimately give way to more sustainable configurations of income and spending. But that leaves open the question of the nature of that adjustment. Ideally, the transition would be made without disturbing the relatively tranquil macroeconomic environment that we now enjoy. But the size and persistence of the current imbalances pose a risk that the transition may prove more disruptive.

Do you think Al was muttering Flexible! Flexible Markets! I've got eight months to go, you idiot!