You are here: Home → Forum Home → The Mac Observer Forums → Apple Finance Board → Thread
Feds news conference
-
For the first time in history, the Federal Reserve Chairman, Ben, will take questions after
their policy meeting on the 27th. How will this affect the markets, and whats the purpose.
This could be an annoucement of the end of QE2, or the intention of interest rate hikes.
Either way it should be market moving. Any thoughts? -
Fed gives me cramps.
-
The Fed want to control the conversation. They want their friends in the media to be singing the right songs from the right songbook. On Thursday they will use specific words that are to be repeated by their friends. This is not new, of course. They have always done this. “Quantitative Easing” is so much nicer than “Devaluation”.
What is different now is that the Fed is very afraid. They have lost control and are desperate to regain it. It is no longer the case that anyone who owns gold is a seen as a crackpot. It is no longer true that U.S. trading partners have no choice but to eat dollars. It is no longer possible to ignore Ron Paul. It is no longer automatic for Pimco to buy Treasuries.
Meanwhile, negative interest rates and massive devaluation have failed to revitalize the economy.
The underlying goal of this press conference (and the 60 minutes interview) is to forestall, or at least prolong, the day when ordinary Americans lose confidence in the dollar as a unit of exchange and a store of value.
Signature
You will find hard currency at Midas Mulligan’s.
-
Eric started a thread pertaining to this topic a couple of days ago that bears looking at.
http://www.macobserver.com/tmo/forums/viewthread/80479/
Signature
I don’t mind being wrong…,I just hate being wrong so FAST!
-
IIe programmer
- [ Ignore ]
Eric started a thread pertaining to this topic a couple of days ago that bears looking at.
Should we merge the two threads?
-
capablanca
- [ Ignore ]
Surprised this thread is seeing dead silence today.
Have we morphed to a point where absolutely everything is posted in the intraday thread, or have we morphed to a point where current members are just not interested in Fed policy?
-
http://finance.yahoo.com/marketupdate/overview?u
the latest FOMC policy statement, which indicated that the Fed expects to keep the Fed Funds Rate—still at 0.00% to 0.25%—at exceptionally low rate levels for an extended period. The Fed also noted that the economic recovery is proceeding at a moderate pace, instead of the firmer pace that it had noted in its previous statement.
Fed Chairman Bernanke later indicated in a press conference that the Fed has lowered its GDP forecast for 2011 to the range 3.1% to 3.3%, from 3.4% to 3.9%. The Fed also trimmed the top end of GDP estimates for 2012 and 2013, but narrowed their long-run growth estimate so that it ranges from 2.5% to 2.8%, instead of 2.4% to 3.0%.
Although GDP growth is expected to moderate, Bernanke announced that the Fed expects unemployment in 2011 to be between 8.4% and 8.7%, which is down from the range of 8.8% to 9.0% that had been previously estimated.
The revisions to economic growth and unemployment come ahead of tomorrow’s report on first quarter GDP, which is widely expected to show growth of 1.7%. It was learned early this morning that the United Kingdom economy expanded at a 0.5% rate in the first quarter.
