FOMC Statement:
Information received since the Federal Open Market Committee met in
September suggests that economic activity has continued to expand
at a moderate pace in recent months. Growth in employment has been
slow, and the unemployment rate remains elevated. Household
spending has advanced a bit more quickly, but growth in business
fixed investment has slowed. The housing sector has shown some
further signs of improvement, albeit from a depressed level.
Inflation recently picked up somewhat, reflecting higher energy
prices. Longer-term inflation expectations have remained
stable.
Consistent with its statutory mandate, the Committee seeks to
foster maximum employment and price stability. The Committee
remains concerned that, without sufficient policy accommodation,
economic growth might not be strong enough to generate sustained
improvement in labor market conditions. Furthermore, strains in
global financial markets continue to pose significant downside
risks to the economic outlook. The Committee also anticipates that
inflation over the medium term likely would run at or below its 2
percent objective.
To support a stronger economic recovery and to help ensure that
inflation, over time, is at the rate most consistent with its dual
mandate, the Committee will continue purchasing additional agency
mortgage-backed securities at a pace of $40 billion per month. The
Committee also will continue through the end of the year its
program to extend the average maturity of its holdings of Treasury
securities, and it is maintaining its existing policy of
reinvesting principal payments from its holdings of agency debt and
agency mortgage-backed securities in agency mortgage-backed
securities. These actions, which together will increase the
Committee’s holdings of longer-term securities by about $85 billion
each month through the end of the year, should put downward
pressure on longer-term interest rates, support mortgage markets,
and help to make broader financial conditions more
accommodative.
The Committee will closely monitor incoming information on economic
and financial developments in coming months. If the outlook for the
labor market does not improve substantially, the Committee will
continue its purchases of agency mortgage-backed securities,
undertake additional asset purchases, and employ its other policy
tools as appropriate until such improvement is achieved in a
context of price stability. In determining the size, pace, and
composition of its asset purchases, the Committee will, as always,
take appropriate account of the likely efficacy and costs of such
purchases.
To support continued progress toward maximum employment and price
stability, the Committee expects that a highly accommodative stance
of monetary policy will remain appropriate for a considerable time
after the economic recovery strengthens. In particular, the
Committee also decided today to keep the target range for the
federal funds rate at 0 to 1/4 percent and currently anticipates
that exceptionally low levels for the federal funds rate are likely
to be warranted at least through mid-2015.
Voting for the FOMC monetary policy action were: Ben S. Bernanke,
Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke;
Dennis P. Lockhart; Sandra Pianalto; Jerome H. Powell; Sarah Bloom
Raskin; Jeremy C. Stein; Daniel K. Tarullo; John C. Williams; and
Janet L. Yellen. Voting against the action was Jeffrey M. Lacker,
who opposed additional asset purchases and disagreed with the
description of the time period over which a highly accommodative
stance of monetary policy will remain appropriate and exceptionally
low levels for the federal funds rate are likely to be
warranted.
"........... to help ensure that inflation, over time, is at
the rate most consistent with its dual mandate, the Committee will
continue purchasing additional agency mortgage-backed securities at
a pace of $40 billion per month."
In other words, let's print $40,000,000,000 of fiat currency
EVERY MONTH to keep inflation under control. ........BUY GOLD
& SILVER
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FOMC Statement - nothing out of the ordinary
Posted by matt on 24th of Oct 2012 at 02:22 pm
FOMC Statement:
Information received since the Federal Open Market Committee met in September suggests that economic activity has continued to expand at a moderate pace in recent months. Growth in employment has been slow, and the unemployment rate remains elevated. Household spending has advanced a bit more quickly, but growth in business fixed investment has slowed. The housing sector has shown some further signs of improvement, albeit from a depressed level. Inflation recently picked up somewhat, reflecting higher energy prices. Longer-term inflation expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee remains concerned that, without sufficient policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions. Furthermore, strains in global financial markets continue to pose significant downside risks to the economic outlook. The Committee also anticipates that inflation over the medium term likely would run at or below its 2 percent objective.
To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee will continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month. The Committee also will continue through the end of the year its program to extend the average maturity of its holdings of Treasury securities, and it is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities. These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.
The Committee will closely monitor incoming information on economic and financial developments in coming months. If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability. In determining the size, pace, and composition of its asset purchases, the Committee will, as always, take appropriate account of the likely efficacy and costs of such purchases.
To support continued progress toward maximum employment and price stability, the Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economic recovery strengthens. In particular, the Committee also decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that exceptionally low levels for the federal funds rate are likely to be warranted at least through mid-2015.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Dennis P. Lockhart; Sandra Pianalto; Jerome H. Powell; Sarah Bloom Raskin; Jeremy C. Stein; Daniel K. Tarullo; John C. Williams; and Janet L. Yellen. Voting against the action was Jeffrey M. Lacker, who opposed additional asset purchases and disagreed with the description of the time period over which a highly accommodative stance of monetary policy will remain appropriate and exceptionally low levels for the federal funds rate are likely to be warranted.
I think that was the
Posted by kalinm on 24th of Oct 2012 at 02:39 pm
I think that was the lamest reaction to the Bernanke I have ever seen? Looks to me like the market was waiting all along for AAPL earnings. Yawn.
Absolutely Brilliant !!!
Posted by evne01 on 24th of Oct 2012 at 02:38 pm
Excerpt from FOMC Statement:
"........... to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee will continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month."
In other words, let's print $40,000,000,000 of fiat currency EVERY MONTH to keep inflation under control. ........BUY GOLD & SILVER