Fed to extend "extended period"

Reuters via Fidelity.com ^ | April 25, 2010 | Pedro Nicolaci da Costa

[mlocher]

WASHINGTON (Reuters) - With official interest rates near zero and the Federal Reserve unable to cut them any further, every policy meeting by definition brings the central bank one step closer to an eventual monetary tightening.

As signs of firmer U.S. growth become more widespread, investors are getting antsy about anticipating the Fed's next move, a guessing game sure to gather momentum as the Federal Open Market Committee holds a two-day meeting this week.

Much of the discussion in the markets now centers upon how soon the Fed will abandon a commitment to keep rates really low for an "extended period" -- and how quickly after that it might get down to the real business of pushing rates higher.

Judging by the cautious tone of the Fed's most influential members, and the weight of their views on the committee's policy decisions, those looking for imminent rate changes have probably gotten ahead of themselves.

"The Fed is in no hurry to raise rates," said Eric Green, economist at TD Securities. "The FOMC meeting will not show any material digression from the methodical wait-and-see approach to policy."

The unfolding crisis in Greece, which took a turn for the worse on Friday as the country announced it would need to tap an emergency aid package from Europe and the International Monetary Fund, is also casting a pall over a still-nascent global recovery.

[mlocher]

It is hard for the administration to spin this economy as being good, especially when the Fed's actions point at the opposite.

[bert]

My neighbor tried to sell their house.....no takers.

They raised the price to capture some of the buyers tax credit

[packrat35]

As signs of firmer U.S. growth become more widespread

Boy is smoking crack.

[VRWC For Truth]

There is no growth; otherwise, they’d be raising rates. The free market is about to crush these azzhats.