What Fed really worry about?

Let's look at excerpts from the statement.

A number of participants cited the recent depreciation of the dollar on foreign exchange markets, elevated energy costs, and the possibility of a slowing in underlying productivity growth as factors tending to boost the upside risks to their inflation outlook, though, on net, they saw the risks to stable underlying inflation as still balanced.

The recent decline in the dollar would raise import prices and diminish competitive pressures on many industries. Besides, a number of participants expressed doubts that domestic and global financial imbalances would be reduced in the near-term.

Oil prices had fallen of late, though, they were still considerably higher than they had been in the spring.

In addition, productivity growth had slowed appreciably in the most recent quarter and unit labor costs had increased, raising questions about cost pressures going forward.

Some participants believed that prolonged period of policy accommodation had generated a significant degree of liquidity that might be contributing to signs of potentially excessive risk-taking in financial markets.

Well, upside risks of inflation outlook were worries of only some or a number of participants of FOMC Dec's meeting. Mr. Greenspan should not belong to that group of pessimists. Do you thing so? :)