...and their complaining causes the FOMC to overshoot on policy decisions. The lag that monetary policy has is significant, and the FOMC in recent years has made it even slower through their policies of incrementalism. There are several possibilities here for...
...growth and the persistent credit crunch that helped to nearly drive Bear Stearns into bankruptcy. However, the minutes of the FOMC’s March meeting revealed that the dissenters in the vote to cut rates by 75bps are growing increasingly hawkish, and there’s...
...the same effect as lowering the rate – without though necessarily affecting the prime rate and related rates. Minutes of this FOMC meeting will be released on January 6. The FOMC’s next scheduled meeting is January 27-28. Here’s how today’s statement compares ...
...to radiate out, and will continue to, until the Fed starts its next tightening cycle. 4) The way I understand the FOMC’s behavior at present, is that they will drop rates hard for a time, and then remove policy accommodation dramatically once normal economic...
...Board staff's Greenbook forecasts outperform private forecasts. Yet the Greenbook is released publicly with a five-year delay. FOMC forecasts are released in a more timely manner. --Recent research has shown that Greenbook forecasts are superior to FOMC forecasts....
...an unusual role as Fed chairman -- patron saint of Wall Street. His (and several other Committee members') statements in between FOMC meetings have seemed less geared to addressing the housing and sub-prime crisis than tempering financial markets, which have...
...and when interest rates trend lower, the same thing happens to the market. Soon, I expect this correlation to break. The FOMC is near the end of an easing cycle introduced to support a diving economy, but at the same time they are sacrificing control of...
...be difficult to be very specific in a communiqué that is generally only a few small paragraphs in length. The verbiage of the FOMC statement could be pretty general. The substance of the FOMC discussion will come from the minutes of the meeting, which will...
...Fed holds a regularly scheduled policy meeting next week. Whereas a few weeks ago most investors expected that the FOMC would contemplate either a 25 bp or 50 bp rate cut, the consensus seems to have shifted to no more than a 25 bp cut. Indeed, a few market...
...rate," Poole said of the central bank's policy-setting Federal Open Market Committee. "My judgment is that most of the time the FOMC cannot provide what the market wants because the FOMC itself is not clairvoyant." Poole is retiring in the spring from the...