Skip Navigation

Close and don't show again.

Your browser is out of date.

You may not get the full experience here on National Journal.

Please upgrade your browser to any of the following supported browsers:

Reveal Navigation

FED HOLDS OFF ON NEW BOND BUYING FED HOLDS OFF ON NEW BOND BUYING FED HOLDS OFF ON NEW BOND BUYING FED HOLDS OFF ON NEW BOND...

share
This ad will end in seconds
 
Close X

Not a member? Learn More »

Forget Your Password?

Don't have an account? Register »

Reveal Navigation
 

 

Policy / Economy

FED HOLDS OFF ON NEW BOND BUYING

photo of Jim Tankersley
August 1, 2012

Fed declines for now to embark on QE3 despite recent signals it is worried about anemic economy's health.

  •  Decision not to ease now is a blow to any hopes the Obama administration had of monetary easing that could boost the recovery noticeably before November’s elections. The timing also risks disappointing equity markets, which rallied in the days leading up to the Fed meeting.
  • Delay will allow Fed to digest two more monthly jobs reports before the policy-setting Federal Open Market Committee meets again. Economists expect bond purchases to be announced at next FOMC meeting on Sept. 12-13, unless the economy shows  new signs of vigor.
  • Statement from FOMC says "economic activity decelerated somewhat over the first half of this year" and inflation is on pace to stay at or below the Fed's target.
  • Fresh jobs data due out on Friday. A Bloomberg consensus forecast predicts July job gain of 100,000, up from June but still not fast enough to dent unemployment significantly.

 

Get us in your feed.
 
Comments
comments powered by Disqus