The release of Fed Open Market Committee (FOMC) minutes on Wednesday gave us some more clues.
Wall Street investors are expecting another rate cut when the Fed's Federal Open Market Committee meets in Washington on Oct. 28-29.
That implication could be drawn from the recently released minutes of the Fed's last Open Market Committee meeting, during which the federal funds rate was cut from 2.25% to 2%.
Has the Federal Reserve run out of bullets? that implication could be drawn from the recently released minutes of the Fed's last Open Market Committee meeting, during which the federal funds rate was cut from 2.25% to 2%.
While the Fed will be updating its forecasts at each of its Federal Open Market Committee meetings, the Fed Reality Check will measure economic results against the first set of Fed forecasts from each year.
After 36 years in the Federal Reserve System, including almost 14 years as president of the Dallas Fed and a member of the Federal Open Market Committee, I'm astonished at how far this Fed has gone beyond what had been normal, prudent central bank practices.
Fed Chairman Ben Bernanke will speak Friday, less than two weeks after minutes from the latest Federal Open Market Committee showed that the Fed came closer than ever to a new stimulus package during its July meeting.
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The news was revealed in the minutes of the Fed's 13 December Federal Open Market Committee meeting.
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The markets could get a hint of what the Fed plans Tuesday afternoon after the Federal Open Market Committee meets.
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The Fed's policymaking body, the Federal Open Market Committee, is due to meet again on November 6th.
This occurs through Federal Open Market Committee activities where the Fed buys and sells short term treasury notes.
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Traders are focusing upon the conclusion Wednesday afternoon of the two-day meeting of the U.S. Federal Open Market Committee, after which the Fed will issue statement.
The Federal Open Market Committee voted to keep its fed funds target rate unchanged at a range of zero to 0.25% Wednesday, but did acknowledge the improving economic environment.
The policy announcement was approved unanimously by the Federal Open Market Committee, the group of Fed board members in Washington and Fed regional bank presidents who set the federal funds rate.
Its powerful chairman, Alan Greenspan, first demonstrated the extent of his concern by persuading his colleagues to cut interest rates on January 3rd, in between regular meetings of the Fed's main policymaking body, the Federal Open Market Committee.
Members of the Federal Open Market Committee (FOMC), the Fed's main policymaking body, now expect growth of between 1.9% and 2.4% this year, down sharply from their April forecast of growth between 2.4% and 2.9%.
Also, the market began working its way higher again after a policy statement following a U.S. Federal Open Market Committee meeting Wednesday showed that the Fed intends to stick with its accommodative monetary policy, said Sean Lusk, gold and silver analyst with Ironbeam.
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The Fed minutes from 2007 reveal that members of the Federal Open Market Committee began to struggle to find a middle ground between action that was internationalist enough to ward off a systemic financial collapse on the one hand, and Lassie-Faire enough to avoid moral hazard on the other.
The theory says that if the Fed Chief carried a thick briefcase on the morning of the Federal Open Market Committee it signals a change in interest rates.
On Aug. 7, when the Open Market Committee last met in regular session, the Fed chose to keep rates at 5.25%, saying growth was moderate and its main focus was the risk of inflation.
Once again, the Fed left interest rates unchanged at 6.5% at its open-market committee meeting on August 22nd.
Fed funds futures even discounted a rate hike at next month's regular Open Market Committee meeting.
The Fed will also release minutes of the Sept. 16 meeting of its rate-setting Open Market Committee on Tuesday.
This comes ahead of a Dec. 11-12 meeting of the Federal Open Market Committee, which will be closely watched by investors to see what the Fed intends to do as the program known as Operation Twist winds down.
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Following two days of sell-offs in stock markets across the globe--and a week ahead of its Federal Open Market Committee meeting (when the rate cut was expected)-- the Fed slashed short-term interest rates by three-quarters of a percentage point, its single most dramatic rate reduction since 1984.
Even some members of the Federal Open Market Committee suggested that inflation risks may require monetary tightening sooner rather than later, according the Fed minutes released on Wednesday.
When the Fed pours money into the system with the purchase of mortgage-backed securities, combined with guidance from the Federal Open Market Committee that the federal funds rate will remain near zero at least through mid-2015, it depresses yields on debt instruments.
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