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Originally posted by Crakeur
the fed really doesn't have much room to do anything here. they can't pump money into the system if they don't have it and, since Obama is still hellbent on spending money he doesn't have (somalia anyone)
Originally posted by InFriNiTee
Today, the FOMC Meeting will begin at 3:30 PM EDT.
Here is a link to the live feed:
and a link to the USTREAM main page for the fed:
edit on 8/9/2011 by InFriNiTee because: (no reason given)
The Fed sharply downgraded its view of the U.S. economy, signaling it plans to keep short-term rates close to zero for at least another two years.
Information received since the Federal Open Market Committee met in June indicates that economic growth so far this year has been considerably slower than the Committee had expected. Indicators suggest a deterioration in overall labor market conditions in recent months, and the unemployment rate has moved up. Household spending has flattened out, investment in nonresidential structures is still weak, and the housing sector remains depressed. However, business investment in equipment and software continues to expand. Temporary factors, including the damping effect of higher food and energy prices on consumer purchasing power and spending as well as supply chain disruptions associated with the tragic events in Japan, appear to account for only some of the recent weakness in economic activity. Inflation picked up earlier in the year, mainly reflecting higher prices for some commodities and imported goods, as well as the supply chain disruptions. More recently, inflation has moderated as prices of energy and some commodities have declined from their earlier peaks. Longer-term inflation expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee now expects a somewhat slower pace of recovery over coming quarters than it did at the time of the previous meeting and anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate. Moreover, downside risks to the economic outlook have increased. The Committee also anticipates that inflation will settle, over coming quarters, at levels at or below those consistent with the Committee’s dual mandate as the effects of past energy and other commodity price increases dissipate further. However, the Committee will continue to pay close attention to the evolution of inflation and inflation expectations.
To promote the ongoing economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent. The Committee currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013. The Committee also will maintain its existing policy of reinvesting principal payments from its securities holdings. The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate.
The Committee discussed the range of policy tools available to promote a stronger economic recovery in a context of price stability. It will continue to assess the economic outlook in light of incoming information and is prepared to employ these tools as appropriate.
Originally posted by OuttaTime
Look out Asia, Ben just threw you to the wolves.
Originally posted by Crakeur
the fed really doesn't have much room to do anything here. they can't pump money into the system if they don't have it and, since Obama is still hellbent on spending money he doesn't have (somalia anyone), the press conference will probably be more talk about how the downgrade is unwarranted and how the economy is growing, just not as fast as we'd like.
once word gets out that the fed isn't doing anything to prop up the markets, the selling will start again. that's how I see it happening.
I'd be totally shocked if the fed says they're going to start buying up bonds again. It doesn't seem possible, given the lack of funds. What amazes me is that the public will see this as a good thing when, in reality, the gov't will borrow the funds or get the money via taxes and then the gov't will make money on the bond purchase program and, like every other deal the fed has made, the taxpayer will be left shortchanged.
Originally posted by Manawydan
What's being said in that feed that I cant seem to connect to? The whole board just went into free-fall mode.