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.
Don't Miss Today's Top Stories
Comments comments powered by Disqus