The money and fixed income market reacted on the more dovish statement as one would expect. Expectations for higher Interest rate, which had increased ahead of the meeting, were priced out. In the T-N...

As we and the market anticipated, the FOMC left its policy rate unchanged at 0-0.25% and retained the pledge to keep interest rates at current low level for an 'extended period'. Economic assessment c...

The assessment of activity was slightly more upbeat than in the previous statement. As expected the FOMC turned more optimistic on the labour market while on the other hand noting recent very weak hou...

As was widely expected by us (and to a lesser extent by the markets) the Fed kept the wording and tone of its interest rate decision statement largely unchanged, and maintained its commitment to keepi...

The two critical phrases in the FOMC statement, about keeping rates "exceptionally low" for a "critical period" were kept in the statement, and this conformed with consensus expectations for little ch...

The statement issued by the Fed at the conclusion of today’s policy-setting FOMC meeting was very much in line with expectations and flags no imminent shift in policy. It suggested a very modest upgra...

The Fed kept its language regarding keeping interest rates at their low levels for an "extended period" of time. That means rates should remain at their current levels for at least 6 months. Economic ...

We see increasing signs of a self-sustained recovery with relatively solid progress in consumer spending and more developed indications of an imminent turnaround in the labour market. Still, recent si...

The FOMC will hold a one-day policy meeting on Tuesday, March 16th. This will be the first scheduled single day policy meeting for the Federal Reserve since the start of the financial crisis in Septem...

At the March FOMC meeting, the Fed will leave the policy rate unchanged at 0-0.25%. With economic development being largely consistent with expectations since January's meeting, the central bank will ...

During Bernanke's semi-annual testimony to Congress, he reiterated that rates could remain low for an "extended period", thus signalling that the recent hike in the discount rate did not indicate that...

With data prepared and collected on or before February 22, The Fed’s Beige Book indicated that economic conditions have improved, but “in most cases, the increases were modest”. Of the 12 Federal Rese...

The Fed Chairman Ben Bernanke's testimony was inline with market expectation. While the Chairman acknowledged improvement in economic condition, he noted the job market remains quite weak while inflat...

The Fed's exit strategy has begun to capture the market's imagination over the past few weeks, and is starting to wrest away control of the bond market from simmering European fiscal woes. There have ...

For the Fed, the initial step in a return to normalcy is increasing the spread between the funds rate and the discount rate to reestablish the discount rate as a penalty rate. Moreover, we would expec...

Overnight the Federal Reserve Board announced an increase in the spread between the discount and the Fed funds rate spread from 25bp to 50bp effective from today. This leaves the discount rate at 0.75...

In the minutes of the January FOMC meeting, the Fed showed slightly more hawkish tone on the economic outlook. It revised up its forecast on 2010 GDP growth to 2.8%-3.5% from 2.5% to 3.5% projected in...

The minutes of the January 26-27 meeting suggested that most members saw recent economic data as indicating that conditions have improved with economic activity continuing to ‘strengthen’ and the labo...

This week a testimony by Chairman Bernanke to the House revealed the Fed has progressed further in its move towards the exit. During the crisis the Federal Reserve System implemented several alternati...

In his published remarks today, Chairman Bernanke laid out some of the possible approaches the Fed could take to extricate the U.S. economy from the current significant monetary policy accommodation b...

The FOMC concluded its two day meeting with the release of a statement that showed the FOMC moved one mousestep closer towards the end of its exceptionally loose monetary policy stance. It upgraded th...

The January FOMC statement showed slightly more hawkish tone on economic growth though the overall stance remained unchanged – the Fed funds rate will be kept at 0-0.25% and 'economic conditions, incl...

Kansas City District President Hoenig's dissent suggests that at the FOMC meeting there was some discussion about the retention of the phrase "extended period" when referring to low levels of the fede...

There were only incremental changes to the growth section with minor upgrades to several passages in the assessment. Generally the language reflects more certainty that the economy is recovering. More...

The FOMC reaffirmed that the target for the Fed Funds rate will stay in the 0 to ¼ percent range "for an extended period." This decision, however, was dissented by one member of the committee, Thomas ...

As was widely expected the markets (and us), the FOMC kept the fed funds rate unchanged at its current range of 0.00% to 0.25%, and reaffirmed its commitment to keeping the fed funds rate “exceptional...

The statement from the Fed stuck closely to its language in its previous release and citing the same concerns – “low rates of resource utilization, subdued inflation trends, and stable inflation expec...

The FOMC will conclude a two-day policy meeting on Wednesday the 27th of January and announce its policy decision at 14:15 PM ET. The FOMC is widely expected to maintain steady rate policy and 0.0 to ...

Since the last FOMC meeting in December, economic data has been well in line with the outlook revealed in the minutes from the latest meeting. If anything, data has been slightly disappointing – espec...

The debate over Ben Bernanke's reappointment as Chairman of the Board of Governors at the Fed is heating up as the end of his term on 31 January draws closer. His reappointment has turned from being c...

The Fed is expected to keep the policy rate unchanged at 0-0.25% at the January meeting. While there have signs showing improvement in economic outlook, job markets remained the area the Fed concerned...

Today’s beige book report, compiled in preparation for the January 26/27, 2010 FOMC meeting, provided a slight nod to better economic conditions although overall the economy continues to operate below...

The committee discussed the possibility of extending asset purchases beyond the first quarter this year, particularly the MBS purchase program. Some members were concerned about the sustainability of ...

Although the Fed upgraded forecasts of 4Q09 and 2010 growth outlook, the minutes revealed that policymakers remained concerned about the vulnerability of recovery and the impacts may be caused by remo...

The minutes of the December 15/16 meeting suggested that most members saw recent economic data as consistent “moderate growth and subdued inflation in 2010.” As a result, the Fed saw little reason to ...

In end-08, central banks worldwide reduce policy rates to stimulate economic growth, in hopes of combating the worst global recession since World War II. Apart from traditional easing measures, some c...

The Federal Reserve upgraded its current assessment of economic activity noting that the deterioration in the labour market is abating and that household spending is expanding at a moderate rate. On t...

At the end of its scheduled two-day meeting, the Federal Reserve's Open Market Committee (FOMC) confirmed it will leave its target range for the federal funds rate unchanged and is on schedule to phas...

The FOMC meeting in December ended almost the same as we had expected. The Fed continued to keep the policy rate at 0-0.25% and pledged 'exceptionally low levels of the federal funds rate' will be mai...

The Fed holds rates policy unchanged as expected and reaffirms promise to keep rates exceptionally low for an “extended period”. The Fed says that economic activity continues to pick up and labor mark...

If there was any anticipation for a change in today's FOMC statement it probably focused on the term "extended period" for the fed funds rate. That anticipation, weak as it was, has been thwarted. "Ex...

As expected, the FOMC kept the target for the Fed funds rate in the 0 to 0.25% range and reiterated that the low level of the policy rate would likely be warranted "for an extended period." The Fed re...

As had been widely expected by us and the markets, the FOMC kept the fed funds rate unchanged at the 0.00% to 0.25% range, and reaffirmed its commitment to keeping the fed funds rate "exceptionally lo...

In the intermeeting period incoming data has confirmed that the recovery is gathering further strength, with GDP growth shifting up a gear to a 4-5% pace heading into 2010. Much of the strength is sti...

The Federal Reserve chairman Ben Bernanke testified before the Senate Panel regarding his re-nomination for a second term as a chairman for the Federal Reserve of the United States. The testimony reve...

The FOMC concluded its two day meeting with the release of a statement that was nearly identical with the September statement. The FOMC clearly thought that it was not the time to surprise the market ...

With Fed officials providing new economic projections to the FOMC and the Q4 version of the Senior Loan Officer Survey probably to hand, the meeting will have seen few changes in the overall assessmen...

The FOMC decided to leave the Fed funds rate unchanged at 0-0.25% and reiterated to keep it low for ‘an extended period’. The Fed also listed conditions that warranted an unprecedentedly low level of ...

As had been widely expected by us and the markets, the FOMC kept the fed funds rate unchanged at the 0.00% to 0.25% range, and reaffirmed its commitment to keeping the fed funds rate “exceptionally lo...

As expected the FOMC kept the target for the Fed Funds rate in the 0 to ¼ percent range and reiterated that the low level of the policy rate would likely be maintained "for an extended period." While ...