44 votes

After Meeting Federal Reserve Confirms the Obvious: The Economy Sucks

WASHINGTON (MarketWatch) -- The Federal Reserve on Wednesday downgraded its view on the economy but otherwise didn't make make any changes to its key interest rate, low-rate pledge, or asset-buying plans. The Federal Open Market Committee now says "economic activity decelerated somewhat over the first half of the year," vs. a prior description of saying the "economy has been expanding moderately." The decision not to extend its low-rate pledge beyond the current "late 2014" came as a surprise.

More:
http://www.marketwatch.com/story/fed-downgrades-economy-view...

The Fed will use its two-day meeting that ends Wednesday to review its policy options. It will release a statement at 2:15 p.m. Eastern. Fed Chief Ben Bernanke will not hold a press conference this week.

By Greg Robb, MarketWatch — The Federal Reserve will take the small easing step of pledging to keep rates low for longer at the end of its two-day meeting this week, analysts said on the eve of the event.

At the moment, the Fed has said it expects to keep rates exceptionally low until late 2014. Economists say the Fed is likely to push this out until mid-2015.

M o r e . . .

more news



Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

We should use this to stage

We should use this to stage some massive protests and draw attention to the bought off Harry Reid in the senate.

Where's the accountability? Why won't Bernanke even talk to us?

And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor.

QE3?

The less than stellar jobs' report (and unemployment is far worse than that report) as well as pressure from Democrats and the politically-connected super large oligopoly-esque institutions are pushing for another round of cheap credit.

I believe that is what the FOMC is discussing, but I actually do not think they will be as hasty to conducting more open market purchases and injection of cheap money as in the past. Whether people agree with the Fed or not, there is more scrutiny over the Federal Reserve and monetary policy today than any other time in recent history.

I do not think, just after the House passed H.R. 459 and S.202 is up for debate, that the Fed will want more attention through another massive round of credit expansion. This will be interesting...they might try something else like an expansion of Operation Twist or a change in capital requirements.

Operation "Twist & Shoot!" - Fed Rock & Roll


Submitted by Mark Twain, 09/21/2011

Unfortunately, the twist probably won’t have much effect. The last time the Fed tried something similar -- in 1961, when “The Twist” was actually atop the hit parade -- it managed to lower long-term rates by a mere 0.15 percentage point, economists estimate. In a 2004 paper, Fed Chairman Ben S. Bernanke himself pooh-poohed the move. Now, with unemployment high, many households still deep in debt and with mortgages tough to get, such a small step is unlikely to generate much spending. ...

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

The TIMING is wrong for QE3

First, they need a market moving DOWN, not up. They need the DOW down. Why? They need to get OBUMMER re-elected, so they don't have to train another puppet. Human nature for those elitists, being the lazy beasts that they are!

Anyway, if they say a QE3 is now, then, where will the market go after it's already run up again to the top of the trading range. Even if it goes farther up, it will have to correct BIG TIME in August, so that they can run the markets UP in time for the election to make Obummer look good.

"Job growth has only averaged 75,000 per month in the second quarter. Fed officials have indicated that this pace is unacceptable."

"If the next two reports are equally sluggish, the Fed will announce a new round of bond purchase after its Sept. 12-13 meeting, Kasman said."

QE3 done now will run out of gas, and they don't want that to happen, and besides, this is when the blue coats are on vacation! JMHO.

A couple things to consider

With such a massive increase in the money supply, it actually makes more sense for the DOW to just keep going up...possible A LOT. Think about it...just like everything else that is purchased with a FRN, inflation SHOULD make stock prices increase. And like everything else, the value of the stocks will not have appreciated rather the purchasing power of the dollar is decreasing.

As far as it not being the right time for QE3, I'd agree if you are talking about a public announcement of another QE but clearly the FED can pump more money into the financial system without offically announcing it. It seems to me that the Dems and Repubs are just taking turns being the one calling on more "printing". Republicans call it bailouts and Democrats call it Stimulus. So, whoever needs the free money the most will probably have to take the hit...or maybe they just flip a coin.

It sure must be nice to litterally be able to remote into your bank account and just type in 100 million dollars (or whatever) and then use the US Debt as the offsetting accounting entry.

Not only are the banksters robbing us blind...they are putting the responsiblity of repaying their theft on the backs of the unborn.

Average people think I'm joking or "missing something" when I try to explain how the FED works and how the bankers and politically well connected just keep entering millions of dollars in "electronic" money into their accounts and then use that money from nothing to buy things of value like Gold, Silver, or Real Estate. "No Way!" is what I keep hearing. "No way could that really be true" But Oh, it be true!

reedr3v's picture

I think they can buy an unlimited supply of trained

puppets. but with every new one, it is the voters the have to retrain, to accept empty words that fly in the face of common sense; their lies worked beautifully with Obama, but look at the problems with Romney.

Letting silver rise a little.

Letting silver rise a little. Fed will announce no policy change. ( no QE). silver will fall to the 26 to 25.00 area, allowing JPM to exit it's short position as much as possible, allowing the hedge funds to enter into an even stronger short postition. The JPM goes long and skins the hedge funds again this time going up.

I wish

JPM is short so many hundreds of millions even billions of ounces, it's near impossible to cover.

They go down with the ship....the paper price of silver will stay in the 20's until the entire financial system melts down is my prediction.

Tricks and treachery are the practice of fools, that don't have brains enough to be honest. - Ben Franklin

Roger That!

thanks for posting!

This is very good news

for those that need more time to be able to qualify and partake of these rates in housing.
Thanks for posting.

Keepin' it real.

Until 2014?

I thought their contract was up next year?

fireant's picture

They will do a release, but not a press conference...

You may want to adjust the title.
Anyway, I don't expect any major policy change announcements.

Undo what Wilson did