Thread: FOMC Mtg

Lower the rate. He left the door open if it threatens the economy.

It is the only way the government can help those folks out without using tax money. In other words the political pressure is building.

Thursday, September 06, 2007
Sept. 6 (Bloomberg) -- Four regional Federal Reserve bank presidents declined to endorse a cut in the benchmark interest rate this month, as policy makers gauge the impact of the credit- market rout on the U.S. economy.

Kansas City Fed President Thomas Hoenig and Dennis Lockhart of the Atlanta Fed said they hadn't seen sure signs of a housing spillover into the broader economy. St. Louis Fed President William Poole and the Dallas Fed's Richard Fisher said the effects of the turmoil so far are unclear.

The usual band of academic fools who just don't get it. Hopefully, Bernie does.

http://aheadofthenews.com/

Bump

It's obvious now, Ben will cut. The poll should be whether it's going to be .25 or .5 and if it's going to come before the 18th.

Originally Posted by 350zCommTech

It's obvious now, Ben will cut. The poll should be whether it's going to be .25 or .5 and if it's going to come before the 18th.

For the conspiracy theorists out there, IF the gov't really wants more of a housing/market correction, then the Fed won't cut on Sept 18th.

For that matter, some talking heads are speculating that a .25 cut will be received as a negative by the market. Thinking a .5 cut is what is needed.

Originally Posted by weatherweenie

For the conspiracy theorists out there, IF the gov't really wants more of a housing/market correction, then the Fed won't cut on Sept 18th.

For that matter, some talking heads are speculating that a .25 cut will be received as a negative by the market. Thinking a .5 cut is what is needed.

I still think they are going about it all wrong...the REASON we are in this mess is the rampant runup in commodities....energy being a major aspect here....control the market runup in basic everyday commodities and the economy will just throttle along......of course you will take the market play on energy out of the picture, but then, all you will have is other corporate stocks and such to play .....without a rampant energy inspired commodity price rise......seen the price of wood lately???

But that's my 2 cents.

Guess we (the 60%) had that one wrong.

Minutes of the Sept. Fed FOMC meeting are now out on the web:

For your reading pleasure:

http://www.federalreserve.gov/moneta....htm#calendars

and click on today's date.

Wow. Fed sounds pretty depressing about the 4th quarter economic growth.

Check out the wording near the end of the document:

"In the Committee's discussion of policy for the intermeeting period, all members favored an easing of the stance of monetary policy. Members emphasized that because of the recent sharp change in credit market conditions, the incoming data in many cases were of limited value in assessing the likely evolution of economic activity and prices, on which the Committee's policy decision must be based. Members judged that a lowering of the target funds rate was appropriate to help offset the effects of tighter financial conditions on the economic outlook. "

and, from elsewhere in the document:

"In preparation for this meeting, the staff continued to estimate that real GDP increased at a moderate rate in the third quarter. However, the staff marked down the fourth-quarter forecast, reflecting a judgment that the recent financial turbulence would impose restraint on economic activity in coming months, particularly in the housing sector. The staff also trimmed its forecast of real GDP growth in 2008 and anticipated a modest increase in unemployment."

Sounds to me like they are not looking for a lot of upside in the near term.

market likes it, increases likelyhood of rate cut

I don't know about you, but that sounds like a signal the Fed is willing to cut rates. Ofcourse, with an election year comming up, I'm not surprised!
What's that Bush is saying, "A horse, a horse, my kingdom for a horse.?"