The Fed Delaying?

[Annie]

Markets start to fall as no word comes nearly an hour late. I sure hope they have something, as the quiver certainly looks empty.

 

[Oddball]

Remain calm...All is well.

 

[Annie]

Remain calm...All is well.

Easy for me to remain calm, I've nothing to lose. It's more an intellectual endeavor in tea leaf reading.

 

[Annie]

It's out:

FRB: Press Release--FOMC statement--August 9, 2011

Release Date: August 9, 2011
For immediate release

Information received since the Federal Open Market Committee met in June indicates that economic growth so far this year has been considerably slower than the Committee had expected. Indicators suggest a deterioration in overall labor market conditions in recent months, and the unemployment rate has moved up. Household spending has flattened out, investment in nonresidential structures is still weak, and the housing sector remains depressed. However, business investment in equipment and software continues to expand. Temporary factors, including the damping effect of higher food and energy prices on consumer purchasing power and spending as well as supply chain disruptions associated with the tragic events in Japan, appear to account for only some of the recent weakness in economic activity. Inflation picked up earlier in the year, mainly reflecting higher prices for some commodities and imported goods, as well as the supply chain disruptions. More recently, inflation has moderated as prices of energy and some commodities have declined from their earlier peaks. Longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee now expects a somewhat slower pace of recovery over coming quarters than it did at the time of the previous meeting and anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate. Moreover, downside risks to the economic outlook have increased. The Committee also anticipates that inflation will settle, over coming quarters, at levels at or below those consistent with the Committee's dual mandate as the effects of past energy and other commodity price increases dissipate further. However, the Committee will continue to pay close attention to the evolution of inflation and inflation expectations.

To promote the ongoing economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent. The Committee currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013. The Committee also will maintain its existing policy of reinvesting principal payments from its securities holdings. The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate.

The Committee discussed the range of policy tools available to promote a stronger economic recovery in a context of price stability. It will continue to assess the economic outlook in light of incoming information and is prepared to employ these tools as appropriate.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Sarah Bloom Raskin; Daniel K. Tarullo; and Janet L. Yellen.

Voting against the action were: Richard W. Fisher, Narayana Kocherlakota, and Charles I. Plosser, who would have preferred to continue to describe economic conditions as likely to warrant exceptionally low levels for the federal funds rate for an extended period.

At first the markets soared, now? Not so much. I'm going to read it.

Index Value: 10,778.74
Trade Time: 2:23PM EDT
Change: Down 31.11 (0.29%)

 

[Modbert]

The market was expecting more stimulus. They didn't get it. Now back to the panic selling.

What they got was a promise to keep interest rates low through mid 2013.

 

[Oddball]

Just came in over the transom.

No increase in interest rates.....Called that one....So much for all that weeping and wailing about the S&P crap.

No QE3...Like printing up another $trillion was gonna help things.

Fed says it will likely keep key interest rate at record low for 2 more years - The Washington Post

 

[Annie]

The market was expecting more stimulus. They didn't get it. Now back to the panic selling.

What they got was a promise to keep interest rates low through mid 2013.

Now up 30pts. Now if the Congress would tell everyone that their taxes are going to be the same for at least 2 years, perhaps some stability? Same with spending, announce freeze for a limited time, just let everyone know what's happening for some period.

 

[Modbert]

Now up 30pts. Now if the Congress would tell everyone that their taxes are going to be the same for at least 2 years, perhaps some stability? Same with spending, announce freeze for a limited time, just let everyone know what's happening for some period.

If you can recognize that raising taxes may have an adverse effect on the market, then you surely can also recognize that cutting spending would have the same result.

Congress is on vacation until September which I personally think is crazy considering what's been going on in the market. They should have immediately returned after the credit downgrade and made a compromise to get our AAA rating back. Which would have included both tax increases and spending cuts.

Getting back our AAA rating would more than balance out the result of raising taxes in any form or cutting spending. I could be wrong though. Someone like Toro would be more likely to know the result of that.

 

[BoycottTheday]

You liberals need to step away from the control panels of State.

To listen to you is to believe there is nothing anyone can do.

So why leave "you people" in power if your only answer is there is nothing you can do?

Have you tried getting out of the way yet?

I swear to God it would work. Old saying time.

Either Lead, follow, OR GET OUT OF THE WAY!!!!!!

Book of freakin Duh.

 

[Annie]

Getting ugly.

Index Value: 10,633.36
Trade Time: 2:46PM EDT
Change: Down 176.49 (1.63%)

 

[Modbert]

Getting ugly.

Index Value: 10,633.36
Trade Time: 2:46PM EDT
Change: Down 176.49 (1.63%)

It's very volatile right now. By the time you posted this, the Dow is up 3 points. It will change by the time i post it. Nasdaq is holding steadily, S&P is up a little. Gold is going down as well.

 

[Annie]

Getting ugly.

Index Value: 10,633.36
Trade Time: 2:46PM EDT
Change: Down 176.49 (1.63%)

It's very volatile right now. By the time you posted this, the Dow is up 3 points. It will change by the time i post it. Nasdaq is holding steadily, S&P is up a little. Gold is going down as well.

That's just what I was going to say too. Going up and down, rapidly. Nasdaq seems a tad more stable. I can't help thinking in the long run this will be the best move they could make. Stay out of the way, add the stability they can.

 

[Modbert]

That's just what I was going to say too. Going up and down, rapidly. Nasdaq seems a tad more stable. I can't help thinking in the long run this will be the best move they could make. Stay out of the way, add the stability they can.

It's in a 449 point range right now according to CNBC for the Dow Jones. It went up 100 points when the Feds finally announced their statement. Then went down almost 200 points within minutes. It's not rational buying and selling right now for a lot of traders.

I wouldn't be surprised to see the Dow end in the red today at all. I would see the Nasdaq continuing to hold steady for a small gain or small loss unless something else happens.

 

[Modbert]

Though it may change by the time I post this, the market is rallying right now.

Dow is up 140 points. S&P is up. Nasdaq is up. Gold is going down.

I'm curious as to what's doing this. Maybe it's just traders have had enough of selling, not sure.

1.7 billion shares traded today, pretty big volume.