"This was definitely going to be a different sort of FOMC day with the way that the new communications are going to show more of the inner-thinking of the Federal Reserve on rates and monetary policy. What was of no surprise is that the FOMC decided to keep rates on Fed Funds flat at 0.00% to 0.25%.
What was new and unexpected was the comments on how long exceptionally low interest rates will remain in place. Rather than through mid-2013, the FOMC now has language that will accommodate that near-zero rate stance at least through late 2014. If that is not a dovish Fed, there never has been one.
Everyone has been wondering if quantitative easing would expand via QE3 (or QE2.5)… Let’s just be honest. This is more like QE4..."
at http://247wallst.com/2012/01/25/fed-now-keeping-near-zero-rates-through-late-2014-qe4/#ixzz1kVJKc3kq
What was new and unexpected was the comments on how long exceptionally low interest rates will remain in place. Rather than through mid-2013, the FOMC now has language that will accommodate that near-zero rate stance at least through late 2014. If that is not a dovish Fed, there never has been one.
Everyone has been wondering if quantitative easing would expand via QE3 (or QE2.5)… Let’s just be honest. This is more like QE4..."
at http://247wallst.com/2012/01/25/fed-now-keeping-near-zero-rates-through-late-2014-qe4/#ixzz1kVJKc3kq
