Latest FOMC meeting

From the latest Fed meeting:

  • Top priority developing tools to remove policy accomodation and at right time
  • Already has or can develop tools to remove policy accomodation
  • Staff agrees most backup liquidity facilities should be extended to early next year
  • Removing liquidity facilities prematurely might renew pressure on some firms and markets
  • If economy and market improvements continue, some facilities might not be extended
  • Staff agrees changes to its program of asset purchases of asset were not warranted at the moment
  • Economic outlook revised upward for the remainder of 2009 and 2010

The following are also revised estimates for the US for the rest of 2009 and 2010:

  • GDP growth revised up to between -1.5 and -1.0, from -2.0 to -1.3 estimates in April for 2009, and 2.1 to 3.3 from 2.0 to 3.0 for 2010
  • Unemployment was admitted to be higher than predicted – 9.8 to 10.1 from 9.2 to 9.6 for 2009, and 9.5 to 9.8 from 9.0 to 9.5 for 2010
  • PCE inflation rose to 1.0 to 1.4 for 2009 from 0.6 to 0.9, and 1.2 to 1.8 from 1.0 to 1.6 for 2010
  • Core PCE inflation was higher at between 1.3 to 1.6 from 1.0 to 1.5, and 1.0 to 1.5 from 0.7 to 1.3 for 2010

Fed funds rate maintained at between 0 and 0.25 percent.

The entire PDF report HERE.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s