Below is the full text of the Fed’s FOMC decision from their two-day meeting that just ended. They kept short-term Discount and Fed Funds rates the same and said that ‘inflation will remain subdued for some time’ but this is a slight change from the April statement that said ‘sees some risk that inflation could
Janet Yellen
Information received since the Federal Open Market Committee met in March indicates that the economy has continued to contract, though the pace of contraction appears to be somewhat slower. Household spending has shown signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit. Weak sales prospects and difficulties in
Full Fed statement below following today’s FOMC meeting. They’ve more than doubled their mortgage bond buying program to drive rates down. Rates trading lower on the news. FULL FED FOMC STATEMENT: Information received since the Federal Open Market Committee met in January indicates that the economy continues to contract. Job losses, declining equity and housing
The FOMC said that they will keep buying mortgage bonds according to their $500b by June schedule and also said they will keep going if necessary. They left rates alone. Mortgage bonds sold off heavily after the Fed meeting, ostensibly because they also said they’d buy long-term Treasuries as well, which contribute to already diluted
In a speech yesterday, San Francisco Fed president discussed the economy and the government responses. The speech was called The Outlook For 2009, but mostly it was a review and defense of what the Fed (and some of what the Treasury) is doing. Summary current economic situation: Note this is just a summary of the