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HomeFed Treadmill Continues
Posted by Larry Doyle on April 28th, 2010 2:33 PM |
The Fed just released its regularly scheduled statement reviewing the economy and providing its outlook for monetary policy. What is interesting is not the report from the Fed but the market reaction, or lack thereof. Has the octane in the Fed’s fuel finally been exhausted? Is the engine running in reverse in the EU putting the brakes on the overall market?
The Fed provided a very qualified statement indicating that the economy is improving ever so slightly, that inflation pressures remain subdued, that employment prospects are beginning to improve, but that real slack remains in the overall economy. The Fed gave no hint that it is thinking of selling any assets (mortgages or agency debt). Add it all up and the Fed is in no hurry to make any change in its easy interest rate policy, that is a 0-.25% Fed Funds rate for an extended period. (more…)
