|
Comparative Analysis of Current vs. Oct 29 FOMC Statements |
|
|
|
Fundamental Archives |
Written by Trade The News |
Dec 16 08 18:40 GMT |
|
Comparative Analysis of Current vs. Oct 29 FOMC Statements
Fed to use "all available tools" and expects "exceptionally low levels of the federal funds rate for some time"
- in the economy paragraph the FOMC notes "economic activity has weakened further" still. It also expands on the weakness noted in the Oct statement regarding the industrial sector, stating weakness is now hitting the labor market and consumer spending.
- the inflation paragraph added that "inflationary pressures have diminished appreciably," but still expects it to moderate in coming quarters.
- the most notable change is the FOMC hinting at future alternative policy actions, saying the Fed to use "all available tools" to promote normalization of economic growth and price stability, and forecasting that "weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time."
- in the final paragraph the FOMC gets more specific than usual, stating "As previously announced, over the next few quarters the Federal Reserve will purchase large quantities of agency debt and mortgage-backed securities to provide support to the mortgage and housing markets, and it stands ready to expand its purchases of agency debt and mortgage-backed securities as conditions warrant."
Trade The News Staff
Trade The News, Inc.
Legal disclaimer and risk disclosure
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.
|
