Key highlights: "
Participants viewed the weakness in first-quarter economic
growth as likely to be largely transitory, influenced by unusually
severe weather, increases in energy and other commodity prices, and
lower-than-expected defense spending. As a result, they saw
economic growth picking up later this year....Recent
increases in consumer food and energy prices, together with the
small uptick in core consumer price inflation, led the staff to
raise its near-term projection for consumer price inflation.
However, inflation was expected to recede over the medium
term, as food and energy prices were anticipated to
decelerate...Nearly all participants indicated that the
first step toward normalization should be ceasing to reinvest
payments of principal on agency securities and, simultaneously or
soon after, ceasing to reinvest principal payments on Treasury
securities....
A few members remained uncertain about the benefits of the
asset purchase program but, with the program nearly completed,
judged that making changes to the program at this time was not
appropriate...The participants who favored earlier sales also generally
indicated a preference for relatively rapid sales, with some
suggesting that agency securities in the SOMA be reduced to zero
over as little as one or two years. Such an approach was viewed as
allowing for a faster return to a normal policy environment,
potentially reducing any upside risks to inflation stemming from
outsized reserve balances, and more quickly eliminating any effects
of SOMA holdings of agency securities on the allocation of
credit."
KEY HIGHLIGHTS FROM THE FED
Posted by dylan398 on 18th of May 2011 at 02:20 pm
Key highlights: " Participants viewed the weakness in first-quarter economic growth as likely to be largely transitory, influenced by unusually severe weather, increases in energy and other commodity prices, and lower-than-expected defense spending. As a result, they saw economic growth picking up later this year....Recent increases in consumer food and energy prices, together with the small uptick in core consumer price inflation, led the staff to raise its near-term projection for consumer price inflation. However, inflation was expected to recede over the medium term, as food and energy prices were anticipated to decelerate...Nearly all participants indicated that the first step toward normalization should be ceasing to reinvest payments of principal on agency securities and, simultaneously or soon after, ceasing to reinvest principal payments on Treasury securities.... A few members remained uncertain about the benefits of the asset purchase program but, with the program nearly completed, judged that making changes to the program at this time was not appropriate ...The participants who favored earlier sales also generally indicated a preference for relatively rapid sales, with some suggesting that agency securities in the SOMA be reduced to zero over as little as one or two years. Such an approach was viewed as allowing for a faster return to a normal policy environment, potentially reducing any upside risks to inflation stemming from outsized reserve balances, and more quickly eliminating any effects of SOMA holdings of agency securities on the allocation of credit."
END THE FED!
Posted by jtverr on 18th of May 2011 at 03:57 pm
END THE FED!
P -- dylan posted -- see thread
Posted by bkout3 on 18th of May 2011 at 03:10 pm
soybeans up 36 cents wheat up
Posted by 8899 on 18th of May 2011 at 02:35 pm
soybeans up 36 cents
wheat up 55 cents
great call FED (UP) with you bunch of #%$&*
is it because the barge
Posted by ditch on 18th of May 2011 at 02:37 pm
is it because the barge traffic has been stopped on the Mississippi ?