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Federal Open Market Committee Statement

Discussion in 'International Markets' started by TulipFX, Apr 28, 2011.

  1. TulipFX

    TulipFX

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    http://www.federalreserve.gov/newsevents/press/monetary/20110427a.htm


    Press Release

    Release Date: April 27, 2011

    For immediate release

    Information received since the Federal Open Market Committee met in March indicates that the economic recovery is proceeding at a moderate pace and overall conditions in the labor market are improving gradually. Household spending and business investment in equipment and software continue to expand. However, investment in nonresidential structures is still weak, and the housing sector continues to be depressed. Commodity prices have risen significantly since last summer, and concerns about global supplies of crude oil have contributed to a further increase in oil prices since the Committee met in March. Inflation has picked up in recent months, but longer-term inflation expectations have remained stable and measures of underlying inflation are still subdued.

    Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The unemployment rate remains elevated, and measures of underlying inflation continue to be somewhat low, relative to levels that the Committee judges to be consistent, over the longer run, with its dual mandate. Increases in the prices of energy and other commodities have pushed up inflation in recent months. The Committee expects these effects to be transitory, but it will pay close attention to the evolution of inflation and inflation expectations. The Committee continues to anticipate a gradual return to higher levels of resource utilization in a context of price stability.

    To promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to continue expanding its holdings of securities as announced in November. In particular, the Committee is maintaining its existing policy of reinvesting principal payments from its securities holdings and will complete purchases of $600 billion of longer-term Treasury securities by the end of the current quarter. The Committee will regularly review the size and composition of its securities holdings in light of incoming information and is prepared to adjust those holdings as needed to best foster maximum employment and price stability.

    The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period.

    The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to support the economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.

    Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Richard W. Fisher; Narayana Kocherlakota; Charles I. Plosser; Sarah Bloom Raskin; Daniel K. Tarullo; and Janet L. Yellen.

    http://www.federalreserve.gov/newsevents/press/monetary/20110427a.htm
     
  2. burglar

    burglar

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    Hi Tulip,
    Americans initial response:

    "12:35 pm : The latest FOMC policy statement was just posted. It didn't contain any surprises.

    Among the statement's key takeaways, the Fed has left the Fed Funds rate unchanged at 0.00% to 0.25%. The Committee noted that the economic recovery is proceeding at a moderate pace and that overall conditions in the labor market are improving gradually.

    Stocks haven't made much of a reaction to the statement. In turn, they remain at the neutral line. As for Treasuries, they are near session lows. Meanwhile, the dollar is up narrowly against a basket of major foreign currencies."
     
  3. TulipFX

    TulipFX

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    The USD has been smashed further, I thought we may have seen a more hawkish statement from them because of political pressure. The government is starting to feel backlash from the American public over fuel prices particularly.
     
  4. Tanaka

    Tanaka Always Learning

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    The press conference was a total non-event. I watched it live and thought it was quite pointless as nothing new was said. The markets reacted last night, but I thought they would have already had his stance priced in. BB was asked a couple of times to answer how long his current actions would last, and both times he totally dodged the questions with long off the topic answers. I think the market read this as it's going be for a substantial time (years+).

    So we went the whole GFC without a Fed press conference, and then BB decides to give one now. :bonk:
     
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