Surprise, Surprise, Surprise! Fed Leaves Funds Target Unchanged (Waiting For Godot)

Confounded Interest ^ | 07/31/2013 | Anthony B. Sanders

[whitedog57]

Here is the written statement from the Federal Reserve Board of Governors.

Surprise, surprise, surprise! The Fed Funds Target remains unchanged.

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The Taylor Rule, believe it or not, called for a LOWERING of the Fed Funds Target.

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The Federal Reserve said it will maintain its $85 billion in monthly bond purchases and persistently low inflation could hamper the expansion.

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The 10 year Treasury rate rose this morning, then fell on The Fed’s announcement.

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The Dow Jones Industrial Average had a similar reaction.

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The announcement said that The Fed will remain accommodative until the labor market improves. In other words, The Fed is waiting for Godot.

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But tapering will likely come in September. Stay tuned!

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[whitedog57]

ugh!!

[Red in Blue PA]

The recovery is always just over the horizon. Look over there.

[xzins]

But tapering will likely come in September. Stay tuned!

I doubt it. The housing market is tanking due to mortgage applications drying up due to rising interest rates.

The economy and jobs will not improve if housing tanks. It's just a given in this economy.

I doubt they'll start tapering QE until after the 2014 election, IF THEY EVER DO.

[fhayek]

What am I missing? The fed pumps $85 billion per month into the economy. That extends out to about a $1 trillion per year. The country runs a deficit of about $1 trillion annually (maybe a little less this year). So let's say, we are talking about ‘stimulus’ to the tune of $1.75 trillion. GDP growth, as reported today ran about 1.7% in the second quarter, couple with a revised 1.1% for the first quarter. So lets say 1.4% growth for the year. 1.4% of total GDP of 15.8 trillion GDP works out to about $220 billion. Stimulate with $1,75 trillion, get growth of $220 billion. What does this say about the underlying, non-stimulated economy?

[upchuck]

The article doesn’t make much sense without the graphs.

[spawn44]

It’s not about the stand your ground law. It’s about Jessie, Sharpton and the other POVERTY PIMPS trying to remain relevant.

[upchuck]

Your post makes no sense on this thread.