After Meeting Federal Reserve Confirms the Obvious: The Economy SucksSubmitted by Peace Gold Love on Wed, 08/01/2012 - 14:19
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.
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.