Thursday, November 5, 2009

The "Fed" to continue current loose monetary policy?

The Federal Reserve in a press release (FOMC statement) on November 4, 2009 stated that "The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period." This release is rather interesting because IMHO it suggests that the economy is still in very bad shape (possible stagnation/deflation?). Here is the press release for you review:

http://www.federalreserve.gov/newsevents/press/monetary/20091104a.htm

Tell us what you think............................

2 comments:

Anonymous said...

Don't take the punch bowl away!

The Economic Watchdog said...

Time to buy stocks!!

Post a Comment