Tag Archive for ‘Federal Reserve’

Federal Open Market Committee – Pivot to Inflation, Manage Expectations

No major surprises were revealed in the standard summary statement released following the Federal Reserve’s monetary policy setting Federal Open Market Committee (FOMC) meeting January 27-28. With economic output expanding, strong job growth and a declining unemployment rate the committee has shifted its focus to below target (2 percent) inflation as the primary threat to the continuing economic recovery. The… Read More ›

Federal Open Market Committee, December Meeting – Crude Oil, the Dollar and Abroad

Minutes from the Federal Reserve’s monetary policy setting Federal Open Market Committee (FOMC) meeting, held December 16-17, indicate the committee is confident the economic recovery will continue with accelerating growth in output, sustained improvement in job gains and a declining unemployment rate. Lower gas prices as well as improvements in household balance sheets are supporting greater consumer spending. Low interest… Read More ›

Federal Open Market Committee Meeting Concludes – No News Is Good News (For Mortgage Rates)

The Federal Open Market Committee (FOMC) concluded its September meeting and announced that it would continue the asset purchase program (popularly referred to as QE3) at the current $85 billion per month pace. Most analysts were expecting the announcement to be of a reduction in bond purchases (popularly referred to as tapering). The published statement and Chairman Bernanke’s press conference… Read More ›

Federal Open Market Committee Meeting Concludes – No Changes, No Surprises

The statement released following the Federal Open Market Committee’s (FOMC) meeting included no changes and no surprises. The assessment of economic conditions was largely the same: moderate expansion of economic activity, advancing household spending and business investment, a strengthening housing sector, and improving labor market conditions but an elevated unemployment rate. Inflation is running below target but inflation expectations remain… Read More ›

Federal Open Market Committee Meeting Statement – A Clear Signal

The most significant development reported in today’s statement and Chairman Bernanke’s press conference following the two day meeting of the Federal Open Market Committee (FOMC) was the identification of explicit targets connecting improvement in the economy and the beginning of increases in the federal funds rate. Previous FOMC guidance had been that the funds rate would remain at its current… Read More ›

FOMC September Policy Meeting – The Fed Goes All In

The statement released following the two day meeting of the Federal Open Market Committee (FOMC), the Federal Reserve’s main monetary policy setting body, coupled with Ben Bernanke’s post-meeting press conference unveiled the much anticipated third round of quantitative easing, or QE3. As expected, the FOMC also extended the forward guidance, announcing that the Fed funds target rate would remain at… Read More ›

Federal Open Market Committee April Meeting Statement + Bernanke’s Press Conference

The statement following the April 24-25 meeting of the Federal Open Market Committee (FOMC) contained no surprises. The characterization of economic conditions differed little from the March statement: the labor market is improving but the unemployment rate remains elevated; household spending and business investment continue to advance; the housing sector remains depressed; inflation is in check. Economic growth will pick… Read More ›

Fed Beige Book: Modest Pace of Growth Continues for Most Districts

The latest release of the Federal Reserve’s Beige Book indicates that economic activity expanded at a “modest to moderate pace” in nearly all 12 Fed Districts. The sole exception was the Richmond District, and even there local economic activity was described as being at worst flat versus the previous reporting period. Participants noted a solid increase in consumer spending activity… Read More ›