7 replies to this topic

[arbman]

For immediate release

The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent.


Economic growth was moderate during the first half of the year. Financial markets have been volatile in recent weeks, credit conditions have become tighter for some households and businesses, and the housing correction is ongoing. Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters, supported by solid growth in employment and incomes and a robust global economy.

Readings on core inflation have improved modestly in recent months. However, a sustained moderation in inflation pressures has yet to be convincingly demonstrated. Moreover, the high level of resource utilization has the potential to sustain those pressures.


Although the downside risks to growth have increased somewhat, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected.



Future policy adjustments will depend on the outlook for both inflation and economic growth, as implied by incoming information.



Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; Michael H. Moskow; William Poole; Eric Rosengren; and Kevin M. Warsh.

[relax]

Hi kisa, maybe not today or tomorrow, but no news will be good news obviously the credit situation is not bad enough for them to do anything about it next week with CPI and PPI data will decide whether we make a new low and don't turn until the end of august i'd expect consolidation until next week

Edited by relax_dk, 07 August 2007 - 01:26 PM.

[NAV]

Cramer is gonna go nuts

[rkd80]

Cramer is gonna go nuts

you mean MORE nuts?

[selecto]

Zip, zero, nada for the boyz.

[thespookyone]

"obviously the credit situation is not bad enough for them to do anything about it" Oh, I think it is plenty bad enough, unfortunately, with the dollar where it sits, and inflation what it is-their hands are so tied-they didn't even bother to threaten to cut later.

[arbman]

The part that I didn't understand at all was the robust income growth and the global economy stuff. So, is income growth so robust?!? I wonder where they got that impression. The inflation the Fed has created was more robust so far... What about the global economy section? So, are they implying that they can not cut because everyone else is doing so well, so a rate cut would destroy the USD or everyone is doing so well, so the US economy should also do better eventually?!? This was one ambiguous statement... - kisa

[steve]

You can rest assured that the Fed has talked at length with the major investment banking houses and assured them "liquidity will be provided", if needed.