News on Federal Open Market Committee

US consumer prices flat in February

2010-03-18T07:15:59Z

<div><p>US consumer prices were flat in February, restrained by lower fuel prices, the government said Thursday.</p><p>The consumer price index, a measure of the average change in prices of goods and services purchased by households, was unchanged from 0.2 percent in January, the Labor Department said.</p><p>Most analysts had expected a 0.1 percent rise in February.</p><p>Core inflation -- excluding food and energy -- rose 0.1 percent as expected a...

Fed maintains low rates, upgrades view on US economy

2010-03-16T20:17:27Z

<div><p>The Federal Reserve has maintained record low interest rates but offered a modest upgrade to its view of the US economy still dogged by high unemployment and tight credit.</p><p>After a one-day meeting Tuesday, the central bank's policy body voted 9-1 to keep the federal funds rate -- at which banks charge each other for loans -- at a z...

PIMCO: End of mortgage buys form of tightening

2010-03-16T16:00:29Z

<div><p>NEW YORK (Reuters) - The end of the Federal Reserve's program of purchasing $1.25 trillion of mortgage-backed securities at the end of March is a form of tightening monetary policy, the chief of the largest U.S. bond fund manager said on Tuesday.</p><p>Federal Reserve on Tuesday maintained record low interest rates in the hope of stimulating a still fragile US economic recovery, dogged by high unemployment and tight credit.</p><p>After a one-day meeting, the Federal Open Market Committee (FOM...

Whew, says the market. Key words still there in the FOMC minutes.

2010-03-16T20:00:08Z

The Federal Open Market Committee (FOMC) just released its statement regarding the federal funds rate.  The critical phrase remained in the statement, reassuring the market that rates are not about to rise.  It is generally assumed that the FOMC will r...

Fed holds near-zero rates, to keep them for 'extended period'

2010-03-16T12:16:03Z

<div><p>The Federal Reserve on Tuesday maintained its near zero benchmark interest rate, saying it expects to hold the "exceptionally low" rate "for an extended period."</p><p>After a one-day meeting, the Federal Open Market Committee (FOMC) voted 9-1 to keep the federal funds rate -- at which banks charge each o...

US Fed expected to hold rates at record lows

2010-03-16T10:17:41Z

<div><p>US Federal Reserve policy makers held a meeting Tuesday widely expected to keep interest rates at record lows as financial markets looked for signals of future monetary policy tightening.</p><p>Central bank chief Ben Bernanke chaired the one-day session of the US Federal Reserve was widely expected to keep its key lending rate at virtually zero percent Tuesday as financial markets look for signals of future monetary policy tightening.</p><p>Central bank chief Ben Bernanke chairs the one-day session of the ...

Euro falls amid risk aversion

2010-03-15T03:15:50Z

<div><p>The euro fell against the yen and dollar in Asia Monday as weaker regional shares prompted investors to sell the risk-sensitive currency to take profits on its recent rise, analysts said.</p><p>The euro was changing hands at 1.3740 dollars in US Federal Reserve's policy makers are expected to maintain benchmark interest rates at virtually zero percent at their meeting this week amid intense debate on how soon the central bank should tighten monetary policy.</p><p>More than a year after the central bank slashed the federal funds rate to an unprecedented zero to 0.25 percent, economists said ultra-low rates were key to sustaining...

Kocherlakota: Fed must be careful on tightening timing

2010-03-02T12:45:09Z

<div><p>MINNEAPOLIS (Reuters) - The U.S. Federal Reserve must be especially careful when the time comes to raise interest rates because of its bloated balance sheet, Minneapolis Fed President Narayana Kocherlakota said on ...

Fed hikes rate on bank loans amid easing financial crisis

2010-02-22T08:33:28Z

<div><p>The US Federal Reserve said Thursday it was increasing the interest rate it charged on emergency loans to banks in a move to normalize lending after radical measures to jolt the economy from recession.</p><p>The Fed said the hike in the discount rate, or the primary credit rate, to 0.75 percent from 0.5 percent would be effective Friday and reflected the easing ...

U.S. deflation no longer a risk says Fed's Bullard: report

2010-02-22T13:07:37Z

<div><p>SINGAPORE (Reuters) - The United States has escaped the danger of a Japanese-style deflationary trap, but it is not yet time to start tightening policy, St. Louis Federal Reserve Bank President James Bullard told the Financial Times.</...

Federal Reserve Continues To Hold Interest Rates Steady

2010-01-27T14:31:22Z

CHICAGO - JANUARY 27: Clerks work in the Eurodollar pit at the CME Group following news from the Federal Open Market Committee (FOMC) meeting concerning short-term interest rates January 27, 2010 in Chicago, Illinois. The FOMC said it expects to maintain ...

Dissension in the ranks, the market tanks (I'm a poet!)

2010-02-22T14:00:55Z

The Federal Open Market&nbsp;Committee (FOMC) meeting&nbsp;minutes were released a couple minutes ago, sending the market sharply lower.

Nothing about&nbsp;the&nbsp;commentary was terribly surprising. &nbsp;They cited&nbsp;improvement in the direction of the economy, and said that the fed funds rate would remain at 0-.25% for the foreseeable futu...

Fed members see high unemployment as long-term worry

2010-02-23T00:30:14Z

<div><p>Federal Reserve members expressed concern at a policy meeting last month that unemployment would "remain elevated for quite some time," and limit economic growth, minutes released Wednesday showed.</p><p>The minutes from the December 15-16 Federal Open Market Committee show...

Fed's Duke sees low rates for "extended period"

2010-02-23T01:33:52Z

<div><p>WASHINGTON (Reuters) - The Federal Reserve sees a moderate economic recovery continuing in 2010, but needs to keep interest rates "exceptionally low" for an "extended period" to foster job growth, a Fed policymaker said on Monday.</p><p>Fed G...

The Fed Inches Toward the Exit

2010-02-23T14:21:43Z

<div><p> The Federal Open Market Committee -- the policy-setting arm of the Federal Reserve -- chose to stay the course heading into yearend. At the conclusion of its Dec. 15-16 policy meeting, the committee's time-tested "exceptionally low levels of the federal funds rate for an extended period" phrase survi...

Fed moving to exit from unprecedented stimulus

2010-02-23T14:55:36Z

<div><p>The Federal Reserve is edging away from massive interventions to prop up the US economy, but a pledge to stick with record-low interest rates shows lingering concerns over the recovery, analysts said.</p><p>The central bank, concluding a two-day policy meeting Wednesday, maintained the federal funds base ...

US Fed stays course, sees record low rates for 'extended' time

2010-02-23T15:05:19Z

<div><p>The US Federal Reserve extended its record low interest rates Wednesday and reaffirmed this policy would remain in place "for an extended period" to support a still-precarious economic recovery.</p><p>The central bank, concluding a two-day policy meeting, maintained the federal funds base rate of a range of zero to 0.25 percent, which has been in place for the p...