Here are some excerpts from the statement:
"However, the pace of economic expansion will likely slow in the near term, partly reflecting the intensification of the housing correction."
"but recent increases in energy and commodity prices, among other factors, may put renewed upward pressure on inflation. In this context, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully."The fed is going to solve this problem the only way it knows how. It is going to print money.
If you want a steady climber that will profit the most from this inflationary environment. Get into gold stocks. These stocks have the potential to double or triple over the next few years. Stocks like GG, NEM, GOLD, and AEM are the place to be (all of those stocks are all ready multi-billion dollar companies).
The pain is not over for stocks like PMI, MTG, ABK, RDN, TGIC, MER, CFC, KBH, LEN, and MBI.
I'm not arguing that these companies will all go bankrupt, I just do not see the point of risking so much for a relatively small return. I have found that sometimes, when you go bottom fishing the fish bites back.