Posted on 11/04/2009 1:02:30 PM PST by Ernest_at_the_Beach
In answer to all those who are clamoring for the central bank to begin raising interest rates or to at least explain when higher rates might come, the Federal Open Market Committee gave a simple response on Wednesday: Show us the jobs.
Rates will stay "exceptionally low" as long as the unemployment rate is rising and inflation trends are subdued, the FOMC said.
After its two-day meeting ended on Wednesday, the FOMC made essentially no changes to its policy or its forecast of a sluggish and extended recovery. See full story.
The FOMC said it would likely keep its interest-rate target at "exceptionally low levels" for "an extended period of time." The federal funds rate is close to zero.
It's uncertain how long "an extended period" is. But we'll know it when we get there.
The central bank tied its guidance explicitly to high unemployment and to the "subdued inflation trends" that result from the huge output gap between what we could produce and what we actually are producing.
The economy is expected to remain weak for quite a while, the Fed said, but the policymakers are still confident that they are on the right path.
(Excerpt) Read more at marketwatch.com ...
http://www.marketwatch.com/story/text-of-fomc-statement-2009-11-04
“Inflations is always and everywhere a monetary phenomenon.”
The Phillips Curve is DEAD!
3 year moratorium on capital gains taxes..
or better yet, eliminate them..
suspend gas and fuel taxes for 1 year ..
instead O will watch his latest documentary while the nation shrivels
Keeps policy, key extended period language
****************************EXCERPT****************************
By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) -- The Federal Reserve, unsure whether the improvement in the economy is sustainable, made only small changes in its policy statement Wednesday, holding policy steady and repeating that it expects to hold interest rates low for an extended period.
“instead O will watch his latest documentary while the nation shrivels”
Only if the documentary is about him.
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