Wednesday, April 29Posted 4 p.m. EasternThe Federal Open Market Committee concluded its meeting this afternoon, and the accompanying statement was a bit rosier, though still very cautious and guarded, compared with those seen in recent months.In particular, the Fed noted that while the economy continues to contract, the pace "appears to be somewhat slower." There were other notable changes since the March meeting statement, with the Fed noting that "household spending has shown signs of stabilizing but remains constrained" and "the economic outlook has improved modestly since the March meeting, partly reflecting some easing of financial market conditions."But the Fed reiterated that the economy "is likely to remain weak for a time." When economic growth does resume, it will happen "in a context of price stability," a clear nod that the Fed is aware of the inflation consternation so many of us (including yours truly) have.The Fed issued no new programs and deleted a reference by name to the TALF, which was slow to get off the ground and has been equally slow in getting credit to flow again in the beleaguered student loan, credit card and small-business markets. The fact that the Fed didn't make any headlines is good news and is reason for some optimism on the economic front.About Greg McBride advertisementRelated Links:What the Fed saidFed impact: Home equityFed keeps rates near zeroRelated Articles:What the Fed saidFed impact: Credit cardsFed impact: Credit cards
Wednesday, April 29Posted 4 p.m. Eastern
The Federal Open Market Committee concluded its meeting this afternoon, and the accompanying statement was a bit rosier, though still very cautious and guarded, compared with those seen in recent months.
In particular, the Fed noted that while the economy continues to contract, the pace "appears to be somewhat slower." There were other notable changes since the March meeting statement, with the Fed noting that "household spending has shown signs of stabilizing but remains constrained" and "the economic outlook has improved modestly since the March meeting, partly reflecting some easing of financial market conditions."
But the Fed reiterated that the economy "is likely to remain weak for a time." When economic growth does resume, it will happen "in a context of price stability," a clear nod that the Fed is aware of the inflation consternation so many of us (including yours truly) have.
The Fed issued no new programs and deleted a reference by name to the TALF, which was slow to get off the ground and has been equally slow in getting credit to flow again in the beleaguered student loan, credit card and small-business markets. The fact that the Fed didn't make any headlines is good news and is reason for some optimism on the economic front.
About Greg McBride