Category

Federal Reserve System

The Fed

FOMC Meeting: "It's All About Fairy Dust"

With the stock markets still a little jittery after this month's mini-correction, the statements that come out of this week's FOMC meeting (Federal Open Market Committee) will be even more cautious than usual.

"The Fed is all about fairy dust," Money Morning Chief Investment Strategist Keith Fitz-Gerald said in a Wednesday appearance on CNBC World, noting that the Fed really doesn't want to upset the markets right now.

See why CNBC World keeps inviting Fitz-Gerald back...

The Fed

Turn the FOMC Meeting Today into Gains

The FOMC meeting today will mean one thing: accommodative monetary policy is ending.

This may spook some investors who have rode this Fed-driven bull market to big gains.

Here's how you can keep scoring gains even with less easy money flooding the markets.

The Fed

The Fed Balance Sheet Explained

The Fed balance sheet has been expanding at an alarming rate since the financial collapse in 2007.

And there's no surprise the markets have gone along for the ride.

But this week's FOMC meeting will mark an end to that, and no longer will markets be able to fall back on easy money policy.

Here's where the Fed is now, how it got here, and how you can invest around it.

The Fed

Yesterday's Fed News Will Trigger Great Stock Buys,… Just Not How It Intended

I have long said that the Fed has never met a printing press it didn't like nor a dove that it didn't want to set free in the name of higher stock prices. And, yesterday, yet again, Yellen proved it.

Within minutes of releasing its latest set of notes hinting that the Fed will keep rates near zero, the S&P 500 took off on a 34-point gain that is the biggest so far this year. Moving first 45 points from its low of 1,925 to its peak of 1,970 in less than five hours (it later settled slightly lower), the index shrugged off the prior day's losses amidst global growth concerns and weaker European economic data.

This is manipulation of the highest order. It's also proof positive we NEED a correction. Now, more than ever.

A lot of investors will take issue with me on this and I don't blame them one bit - corrections are scary. But, they are also essential when it comes to big returns.

The Fed

FOMC Meeting Minutes Signal a Change in Fedspeak Is on Horizon

The Federal Open Market Committee Meeting (FOMC) meeting minutes were expected to mirror the same sentiments and monetary policy guidelines the U.S. Federal Reserve has been touting for months.

And on that front, this minutes release did not disappoint.

But that doesn’t mean these minutes were not important. Here’s what to look for moving forward…

The Fed

FOMC Meeting Minutes Release Today Will Be the Last of the QE3 Era

Ever since former U.S. Federal Reserve Chairman Ben Bernanke announced the tapering of the Fed's current bond-buying program in December, the release of the Federal Open Market Committee (FOMC) meeting minutes have been unsurprising and awash in technical central-banker jargon.

It's followed the same pattern each time: the Fed will have its meetings, release a statement, and then three weeks later they will release the minutes of that meeting as per Fed protocol.

But, here’s why these minutes are important, if for no other reason than the timing of them…

The Fed

Here's What Rising Rates Really Do to Your Shares

There is a lot of lip service being paid to the upcoming stock market crash that we're supposed to expect once the Federal Reserve starts raising rates.

Every time we get close to a regularly scheduled Federal Reserve statement, financial pundits pontificate about the nuances of what the Fed Chair might say, not say, or imply.

It's like clockwork.

But one theme remains constant: any tightening of the Fed's easy monetary policies will spell impending doom for the easy-money-addicted stock market.

The only problem, though, is that historical facts just don't support the fear. In fact, there are opportunities for investment out there no matter what rates do…

The Fed

FOMC Meeting Today Saves Big News for Next Month

The U.S. Federal Reserve's Federal Open Market Committee (FOMC) meeting today went according to plan, as the Fed will continue to taper bond purchases and is maintaining hushed tones on interest rate increases after the third round of quantitative easing (QE3) ends.

As far as monetary policy is concerned, nothing changed.

With business as usual at the Fed, here are the key takeaways from today’s Fed meeting…

The Fed

This Week's FOMC Meeting: Words Are Everything

Since December 2013, the U.S. Federal Reserve's Federal Open Market Committee (FOMC) meeting has been a routine exercise couched in humdrum Fedspeak and muted discussions on future monetary policy.

But with the meetings happening today (Tuesday) and tomorrow, it's becoming clear that the Fed can't stick to the same script for much longer, and at some point, the nation's central bank is going to have to come clean on when it plans to raise interest rates from its near-zero levels.

So, when are we going to see a rise in interest rates? Here's what we can say about the silent Fed...

The Fed

The Real Reason the Federal Reserve Is Afraid to Raise Interest Rates

When the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve meets next week (Sept. 16-17) to consider when it should raise interest rates, it will have a huge disincentive to do so.

And we're not talking about what you'll hear in the mainstream media about whether the unemployment rate is finally low enough, or whether U.S. economic growth is finally strong enough to warrant tightening monetary policy.

No, what the Federal Reserve fears most is a problem of its own creation...

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