Tag Archive for ‘monetary policy’

October Federal Open Market Committee Meeting Concludes – Waiting For Good Data

The Federal Open Market Committee (FOMC) concluded its October meeting and announced that it would continue the asset purchase program at the current $85 billion per month pace. The committee repeated its consistent message that the purchases would continue until incoming data indicated substantial and sustained improvement in the labor market. The waiting is likely to continue for at least… Read More ›

GDP and FOMC – Two Reports, One Big Surprise

The Bureau of Economic Analysis (BEA) released the advance estimate of real GDP growth for the second quarter of 2013 and the Federal Open Market Committee (FOMC) concluded its two day meeting with the release of the traditional statement reporting on the committee’s actions. These two reports have been much anticipated as analysts track the pace of the economic recovery… Read More ›

Federal Open Market Committee Meeting Concludes – Clarifying Tapering Timing

The Federal Open Market Committee (FOMC) concluded its two day meeting, released the usual statement plus meeting participants’ economic projections, and Chairman Ben Bernanke held a press conference. Beyond some nuance tweaking of the language, the statement really was the “usual” statement; economic activity expanding at a moderate pace, labor market conditions improving but an elevated unemployment rate, household and… 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 Concludes – Stay the Course, Good for Housing

The statement published following the Federal Open Market Committee’s (FOMC) two day meeting had no surprises. The FOMC noted moderate economic growth, an improving labor market, further strengthening of the housing sector, and household and business investment spending as positives. An elevated unemployment rate and restrictive fiscal policy are concerns. The Fed will continue the current highly accommodative policy stance, keeping… 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 Meeting Statement – Reading the Tea Leaves

Today’s statement following the July 31-August 1 meeting of the Federal Open Market Committee (FOMC) offered a couple of hints, but nothing definitive on the big question of further monetary policy easing. The language in today’s statement downgraded current economic growth compared to the statement following the June meeting, replacing “the economy has been expanding moderately this year” with “economic… Read More ›

Monetary Policy: Operation Twist Extended

On Wednesday, the Federal Open Market Committee (FOMC), the branch of the Federal Reserve that determines monetary policy, announced an extension of the ongoing policy sometimes referred to as “operation twist.” This policy seeks to keep long-term interest rates low, thereby stimulating the economy, by selling Treasury securities with short maturities (three years or less) and purchasing Treasury securities with maturities… 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 ›