Posted on 08/09/2011 11:39:44 AM PDT by markomalley
For immediate release
Information received since the Federal Open Market Committee met in June indicates that economic growth so far this year has been considerably slower than the Committee had expected. Indicators suggest a deterioration in overall labor market conditions in recent months, and the unemployment rate has moved up. Household spending has flattened out, investment in nonresidential structures is still weak, and the housing sector remains depressed. However, business investment in equipment and software continues to expand. Temporary factors, including the damping effect of higher food and energy prices on consumer purchasing power and spending as well as supply chain disruptions associated with the tragic events in Japan, appear to account for only some of the recent weakness in economic activity. Inflation picked up earlier in the year, mainly reflecting higher prices for some commodities and imported goods, as well as the supply chain disruptions. More recently, inflation has moderated as prices of energy and some commodities have declined from their earlier peaks. Longer-term inflation expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee now expects a somewhat slower pace of recovery over coming quarters than it did at the time of the previous meeting and anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate. Moreover, downside risks to the economic outlook have increased. The Committee also anticipates that inflation will settle, over coming quarters, at levels at or below those consistent with the Committee's dual mandate as the effects of past energy and other commodity price increases dissipate further. However, the Committee will continue to pay close attention to the evolution of inflation and inflation expectations.
To promote the ongoing economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent. The Committee currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013. The Committee also will maintain its existing policy of reinvesting principal payments from its securities holdings. The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate.
The Committee discussed the range of policy tools available to promote a stronger economic recovery in a context of price stability. It will continue to assess the economic outlook in light of incoming information and is prepared to employ these tools as appropriate.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Sarah Bloom Raskin; Daniel K. Tarullo; and Janet L. Yellen.
Voting against the action were: Richard W. Fisher, Narayana Kocherlakota, and Charles I. Plosser, who would have preferred to continue to describe economic conditions as likely to warrant exceptionally low levels for the federal funds rate for an extended period.
Any chance we can get Obummer to talk to the nation again so we can pick up more stocks at cheaper prices?
the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent
Sweet. More death for savers.
Obama 2012 Campaign is shovel-ready.
Why does it list the people involved in making the decision, when nothing changed?
Oh, it’s like that old Rush lyric.
“If you choose not to decide, you still have made a choice.”
- Geddy Lee
http://www.youtube.com/watch?v=OnxkfLe4G74
Steady as she goes ( . . . downhill).
Thanks for the graphic. Here we go again. This next hour and twenty should be interesting, to say the least.
So these gurus don’t expect any significant rise in inflation, but we are printing money like there’s no tomorrow to paper over our recurring $1.5 Trillion deficits.
I’m not an economic genius, but I sense a disconnect here.
OMG, down 140+...
It dumped about 150 in the last few minutes.
Recovery Summer I
Recovery Summer II
Recovery Summer III
Recovery Summer IV
Recovery Summer V
.....
...ah, 189+...
Ouch!
Starting to tank really fast now that it's setting in.
I am out. This is stupid. I would be better off cashing in the IRA to pay off the mortgage and just living off the land. Who needs this crap?
[That is sarcasm. I rather enjoy watching the IRA slowly melt, like an ice cube on asphalt during this summer of global warming.....)
-200 now...
I hate watching it melt down keeping in mind the people with IRAs out there.
I love seeing it melt down under this dufus and complicit Congress. A pox on them all.
It was down 205 a minute ago, and is now back to 86 down. This is a schizoid market.
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