On Friday, the U.S. Federal Reserve released the transcripts from its vital meetings over the state of the U.S. economy from 2007 through 2009.
The transcripts provide a staggering glimpse into the world of a central bank in crisis, or at least the inability for all parties concerned to grasp the problems at hand.
Here are the five most ridiculous takeaways from the Fed Reports.
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FOMC Meeting Today: How the Taper Is Affecting Markets
As many predicted, the Federal Open Market Committee (FOMC) meeting today ended with the announcement of more taper – cutting monthly bond purchases by $10 billion a month to $65 billion.
The U.S. Federal Reserve will reduce its purchases of long-term Treasury bonds from $40 billion a month to $35 billion, and mortgage-backed securities from $35 billion a month to $30 billion. The decision to continue the taper was unanimous among the FOMC’s 10 voting members.
we could be in for some surprises this year...
Today's FOMC Meeting Minutes: Plan? What Plan?
Today's (Wednesday) release of the December FOMC meeting minutes makes clear one thing: the U.S. Federal Reserve does not have a plan for the course of the stimulus reduction it announced last month. On Dec. 18, the date of the last FOMC meeting, Fed officials announced a winding down of its $85 billion in monthly […]
But that's no excuse for investors not to have a plan...
Stock Market News Today Focuses on FOMC Meeting Outcome
Stock market news today, Oct. 30: Stocks are fairly steady today as investors await the Federal Reserve's next decision on whether to taper its massive bond-buying program, with general expectations being that tapering will be delayed until 2014 amid the recent onslaught of more negative economic indicators.
For several months, investors have had difficulty deciphering how the Fed will pare back this stimulus program, and confusion persists today. Some say tapering may begin at the next Fed meeting in December, while others are predicting next January or March.
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Currency Trading Today: Follow the FOMC to Profits
While last week certainly had its share of risk events that helped move currencies, the major theme in currency trading was continued weakening/consolidation for the U.S. dollar.
This week, the weakening will be a key focus for us. We have some very weighty top-tier data events occurring in the next few days.
This window of opportunity won't stay open for long, however...
Check Out What the FOMC Meeting Minutes Did to the Stock Market Today
In one of the most highly anticipated releases of the year, the Federal Open Market Committee (FOMC) meeting minutes from July 30-31 were released today (Wednesday).
They will be picked apart for days - but here's what you need to know.
FOMC Meeting: Fed Just Backtracked on QE Taper Talk
The Federal Open Market Committee (FOMC) meeting ended today (Wednesday) with word that the Fed plans to the stay the course on QE for now, backtracking from earlier hints it might begin tapering this fall.
"For all those looking for clear guidance on when quantitative easing will end, well, you will have to wait a little longer," Joel Naroff, president and chief economist at Naroff Economic Advisors Inc., wrote in a research note. "Indeed, there may have been some walking backwards today."
Money Morning Capital Wave Strategist Shah Gilani said it's no surprise the Fed has backed away from talk of tapering.
Exclusive: Obama Tells Money Morning Why He Just Loves Larry Summers…
Larry Summers for Fed Chief... He's got my vote. Absolutely!
Why? You just have to get to know the guy and you'll see he's perfectly qualified to head the Federal Reserve.
Here's just part of his resume.
From 1982-1983, Larry Summers was on staff at Ronald Reagan's Council of Economic Advisers. That's where Lawrence of Enablers earned his "Deregulate Everything" T-shirt.
After his brief stint on the Gipper's Council, where he was taught how real pros corral free markets for personal profit, the Enabler headed back to Harvard to teach kids (and himself) how to squeeze personal wealth out of mere economic theory.
He got his next shot at stardom as Chief Economist of the World Bank in 1991. He was there until 1993.
While there he wasted no time shining a light on himself.
In a 1991 interview he famously said:
Read on here...
Stock Market Today in the Red Ahead of FOMC
The stock market today is off to a sluggish start as investors brace for a week of important economic indicators.
Pending homes sales kicked off a week of tell-tale economic data this morning, while earnings season continues with Wynn Resorts Ltd. (Nasdaq: WYNN) reporting disappointing Q2 results.
Why’s There So Much Dissension Inside the Fed?
There's considerable dissension within the ranks at the Federal Reserve, with many of Chairman Ben Bernanke's colleagues saying the Fed's monthly purchase of $85 billion in bonds should end by late this year.
"About half" of 19 Fed members "indicated that it likely would be appropriate to end asset purchases later this year," according to minutes of the June Fed policy-making committee meeting, released Wednesday.
Ending QE3 could have enormous implications for the stock market - whose four-plus-year bull market has been buoyed by the central bank's stimulus - and for the economy as a whole.
But while there's growing sentiment inside the Fed to end QE, a majority of the 12 voting members of the policy-making Federal Open Market Committee hope to extend the bond-buying into next year.
Still, the Fed's June 18-19 meeting could prove to be a turning point, given the amount of discord at the meeting.
The minutes add some context to Bernanke's comments at a press conference immediately after the meeting in which he said the Fed could begin scaling back QE3 this year and end it altogether by mid-2014.
The markets dipped immediately after Bernanke's comments but then recovered some.
"They're Making It Up As They Go Along"
"To me, the real news is that you've got dissension inside the Fed now," said Money Morning Chief Investment Strategist Keith Fitz-Gerald. "My initial read is there's a lot more dissension than usual.
"And," Fitz-Gerald said, showing his longtime disdain for the Fed, "the level of dissension reinforces the notion that they don't know what they're doing and they're making it up as they go along."
Money Morning Capital Wave Strategist Shah Gilani, meanwhile, said the June FOMC showed legitimate concerns among members.