Notes from #FOMC from 9-Apr-2014

Several Fed Officials Said Forecasts Overstated Rate Rise Meeting minutes revealed that in March, Fed Reserve policy makers discussed that a rise in their median projection for the main interest rate exaggerated the likely speed of tightening. Treasury yields rose last month after policy makers predicted that the benchmark interest rate would rise faster than previously forecast. The Fed reduced the monthly pace of bond purchases from $65 billion to $55 billion, and repeated it is likely to continue paring the program in “further measured steps”.

U.S. stocks rose, with the benchmark Standard & Poor’s 500 Index increasing 0.6 percent to 1,862.17 at 2:03 p.m. in New York. The yield on the 10-year Treasury note rose 1 basis point, or 0.01 percentage point, to 2.69 percent.

The committee last month scrapped its pledge to keep the main interest rate low at least as long as unemployment exceeds 6.5 percent

The economy and employment are showing steady gains, the economy isn’t “running flat-out, but it’s running fast enough to push down the unemployment rate and put people back to work.”Payrolls excluding government agencies rose by 192,000 workers after a 188,000 gain in February that was larger than first estimated. That brought the job count to 116.1 million, beating the January 2008 high of 116 million.

While flagging “a weak first quarter in the U.S. due to weather,” it is expected that the economy would grow at a 3 percent annual pace for “the rest of the year and into 2015.” Miami-based Lennar Corp., the biggest U.S. home builder by market value, saw customer traffic and sales volume rise through the first quarter.

Janet Yellen, 67, succeeded Ben S. Bernanke as Fed chief in February after three years as vice chair. In that role, she helped shape communication as the central bank sought to support the recovery from the longest recession since the Great Depression.

Related Posts

  • 74
    The following are the expectations for the minutes of the January FOMC meeting by the economists at Bank of America Merrill Lynch, Citibank, Morgan Stanley, Barclays Capital, and other leading banks.
    Tags: minutes, january, meeting, bank, usa, fed, economy
  • 73
      What's New: With the curtain falling on the Fed's QE. let's take a look at what's been happening of late for US Treasuries. The yields on the 10-, 20- and 30 year Treasuries have generally trended downward since the end of 2013. The latest Freddie Mac Weekly Primary Mortgage…
    Tags: year, yield, long, market, yields, high, years, expected, january, rate
  • 69
    The Federal Reserve holds its last policy meeting of the year on Tuesday and Wednesday, resulting in plenty of material to be scoured for clues about when interest rates will start inching up. The central bank’s policy committee releases its statement and new economic projections at 2 p.m. Wednesday, followed…
    Tags: policy, meeting, p.m, market, yellen, janet, year, reserve, fed, interest
  • 69
    The FOMC meeting is the week's highlight even though policy outcome seems a foregone conclusion. It will continue with the tapering course that Bernanke put on the Fed on before he left. However, there are more moving parts than usual, and it is worth reviewing. Essentially, there are four elements of…
    Tags: meeting, forecasts, policy, continue, fed, bernanke, usa
  • 65
    Employers in the U.S. boosted payrolls and the unemployment rate held at 6.7 percent even as more Americans entered the labor force, showing steady progress that will prompt Federal Reserve policy makers to continue reducing stimulus while keeping interest rates low. Payrolls rose 192,000 last month after a 197,000 gain…
    Tags: gain, payrolls, employment, showing, february, rose, unemployment, u.s, january, government