Federal Reserve , ,

Fed Lowers Key Interest Rate For First Time Since Great Recession

The Federal Open Market Committee of the Federal Reserve announced the first rate cut to its key interest rate range since the Great Recession ushered in a series of rate cuts described as "quantitative easing." The Fed committee confirmed a quarter-point cut to 2.00 to 2.25 percent. Fed Chair Jerome Powell described the rate cut as a "mid-cycle adjustment" intended as a one-time boost for the economy. Mr. Powell said he did not view the cut as the first in a series of quantitative easing moves, but analysts said single rate cuts are not common. The FOMC post-meeting statement said…
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Federal Reserve

FOMC Statement Shows Tapering Of Quantitative Easing Purchases

According to a statement provided by the Federal Open Market Committee of the Federal Reserve, the committee has approved another reduction of the Fed's monthly asset purchases. The adjustment will be made in February and cuts monthly purchases of mortgage backed securities from $35 billion to $30 billion and monthly purchases of Treasury securities from $40 billion to $35 billion. FOMC began reducing its asset purchase under its quantitative easing program in January, when the monthly purchases of mortgage-backed securities and Treasury securities was reduced from $85 billion per month to $75 billion. Citing its goals of maximum employment and…
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Federal Reserve

Fed Minutes Predicts Tapering Of Quantitative Easing Program

Housing Starts exceeded expectations and also beat October's reading of 889,000. November housing starts were posted at 1.09 million against a consensus of 963,000. This reading is more in line with the NAHB/Wells Fargo Home builder Market Index, which reached a four month high with December's reading. With that threat resolved and a new federal budget passed, builders can now proceed without worrying about setbacks caused by government shutdowns and legislative gridlock. Building permits issued in November were slightly lower at 1.01 million than October's reading of 1.04 million. Viewed as an indicator of future construction, and ultimately, available homes,…
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Federal Reserve

Fed Meeting Minutes Show Hope In Economic Growth

The minutes of the Federal Reserve's Federal Open Market Committee meeting held October 29 and 30 were released Wednesday. The meeting began with a report from the Manager of the System Open Market Account and included updates on developments within domestic and foreign financial markets. According to the report, no intervention by the Federal Reserve was required on foreign currencies during the period between the last and current FOMC meetings. FOMC: Key Data Delayed by Shutdown The FOMC noted moderate economic growth in the period since its last meeting, but also noted that several federal agencies delayed release of key…
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