February 15, 2012
- in Uncategorized by schooloftrade
FOMC Meeting Minutes RELEASED
Click here to read the much-anticipated FOMC Meeting Minutes.
detailed record of the FOMC’s most
recent meeting, providing in-depth insights into the economic and
financial conditions that influenced their vote on where to set interest
rates
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*(US) MINUTES OF THE JAN 25
FOMC MEETING: GLOBAL FINANCIAL STRAINS POSE GREAT RISKS; SAW MODERATE
IMPROVEMENT IN HOUSEHOLD SPENDING
FOMC MEETING: GLOBAL FINANCIAL STRAINS POSE GREAT RISKS; SAW MODERATE
IMPROVEMENT IN HOUSEHOLD SPENDING
– 11 members see Fed Funds rate
below 1% by 2014
below 1% by 2014
– 5 members saw fed funds rate as
appropriate at 2% or above by end of 2014
appropriate at 2% or above by end of 2014
– In the fourth quarter, bank credit continued
to increase as banks accumulated agency MBS and growth of total loans picked
up. Core loans–the sum of commercial and industrial (C&I) loans, real
estate loans, and consumer loans–expanded modestly. Growth of C&I loans at
domestic banks was robust but was partly offset by weakness at U.S. branches
and agencies of European banks.
to increase as banks accumulated agency MBS and growth of total loans picked
up. Core loans–the sum of commercial and industrial (C&I) loans, real
estate loans, and consumer loans–expanded modestly. Growth of C&I loans at
domestic banks was robust but was partly offset by weakness at U.S. branches
and agencies of European banks.
– Staff’s projection for the
growth in real gross domestic product (GDP) in the near term was revised down a
bit. The revision reflected the apparent decline in federal defense purchases
and the somewhat shallower trajectory for consumer spending in recent months;
the recent data on the labor market, production, and other spending categories
were, on balance, roughly in line with the staff’s expectations at the time of
the previous forecast
growth in real gross domestic product (GDP) in the near term was revised down a
bit. The revision reflected the apparent decline in federal defense purchases
and the somewhat shallower trajectory for consumer spending in recent months;
the recent data on the labor market, production, and other spending categories
were, on balance, roughly in line with the staff’s expectations at the time of
the previous forecast
– Reports from business contacts
indicated that activity in the manufacturing, energy, and agricultural sectors
continued to advance in recent months. Businesses generally reported that they
remained cautious regarding capital spending and hiring; some contacts cited
uncertainty about the economic outlook and about fiscal and regulatory policy
indicated that activity in the manufacturing, energy, and agricultural sectors
continued to advance in recent months. Businesses generally reported that they
remained cautious regarding capital spending and hiring; some contacts cited
uncertainty about the economic outlook and about fiscal and regulatory policy
– Participants agreed that recent
indicators showed some further gradual improvement in overall labor market
conditions: Payroll employment had increased somewhat more rapidly in recent
months, new claims for unemployment insurance had trended lower, and the
unemployment rate had declined
indicators showed some further gradual improvement in overall labor market
conditions: Payroll employment had increased somewhat more rapidly in recent
months, new claims for unemployment insurance had trended lower, and the
unemployment rate had declined
– It was noted that extending the
horizon of the Committee’s forward guidance would help provide more
accommodative financial conditions by shifting downward investors’ expectations
regarding the future path of the target federal funds rate
horizon of the Committee’s forward guidance would help provide more
accommodative financial conditions by shifting downward investors’ expectations
regarding the future path of the target federal funds rate
– Mr. Lacker dissented because he
preferred to omit the description of the time period over which economic
conditions were likely to warrant exceptionally low levels of the federal funds
rate. He expected that a preemptive tightening of monetary policy would be
necessary to prevent an increase in inflation projections or inflation
expectations prior to the end of 2014
preferred to omit the description of the time period over which economic
conditions were likely to warrant exceptionally low levels of the federal funds
rate. He expected that a preemptive tightening of monetary policy would be
necessary to prevent an increase in inflation projections or inflation
expectations prior to the end of 2014
