Today we find out whether the Federal Reserve's policy-setting group, the Federal Market Open Committee (FOMC), plans to start tapering its monthly bond-buying program of QE, or keep the printing presses running well into next year. Both options have their drawbacks, and the implications for the markets are huge.
fomc meeting 2013
- Fed Meeting Today: Five Big Questions Answered
- FOMC Members "Badly Out of Touch," says Keith Fitz-Gerald
- Silver Prices Today Have Ben Bernanke to Thank
- Keith Fitz-Gerald Nails It on Today's FOMC Meeting
- BREAKING: Bernanke to Continue Controversial Bond Buying Program
- All Things Fed: Keith Fitz-Gerald on Janet Yellen and Today's FOMC Meeting
- Federal Reserve FOMC Meeting Schedule 2013-2014
- The Power of Today's FOMC Meeting
In the wake of the Federal Reserve meeting last week, FOMC members have many public appearances planned in which they're expected to clarify the central bank's recent policy decisions.
Count Money Morning Chief Investment Strategist Keith Fitz-Gerald as one investing expert who will not be hanging on every speech.
Thanks to that "party animal" Ben Bernanke, silver prices today are enjoying a nice bounce.
That's because the U.S. Federal Reserve chairman, along with the other members at the Federal Open Market Committee (FOMC) meeting yesterday, decided to keep the quantitative easing (QE3) flowing steady with $85 billion of bond buying per month.
After the Fed announcement, silver prices rallied by 5.5% to more than $23 an ounce. That's the precious metal's biggest one-day gain since June 28.
Money Morning’s Chief Investment Strategist went on record with his prediction months ago, stating that there’s not a central banker in the world who has the guts to step away from QE. Few – if any – investors agreed. But they didn’t lock in a 100% gain, either…
Fed Chairman Ben Bernanke announced in a press conference this afternoon that the U.S. Federal Reserve will continue quantitative easing, the controversial bond buying program, for now. Chairman Bernanke expressed concern over rising borrowing costs and their effect on the economy, saying that the situation calls for continued quantitative easing.
Analysts on and off Wall Street were surprised, to put it mildly. Markets responded very well to news of continued easy-money policy. The mainstream consensus was that the Fed would begin to taper off its $85 billion monthly bond purchases by around $10 or $15 billion each month. Current pricing just didn't take continued bond buying into account, and the bullish reaction was immediate, intense, and widespread.
Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared on FOX Business' "Varney & Co." today to discuss this week's FOMC meeting and Janet Yellen.
On Monday, Larry Summers announced he is dropping out of the candidate list to replace Ben Bernanke and become the next Fed chief. Next in line for new Fed chief role is Janet Yellen.
As a service to Money Morning readers, we are providing the Federal Reserve FOMC meeting schedule.
The U.S. Federal Reserve's Federal Open Market Committee (FOMC) is a 12-member board within the Federal Reserve system that meets eight times a year to set policy.
In addition to the regularly scheduled meetings, the FOMC can call other meetings as needed. The minutes of a regularly scheduled FOMC meeting are released three weeks after the date of the policy decision.
The Federal Reserve announces what will happen with interest rates eight times a year at FOMC meetings. FOMC meetings are scheduled well in advance and receive a great deal of attention from the media and markets, but it wasn't always this way. It was not until 1994 that the Federal Reserve started publicizing the actions of the FOMC.
Now the FOMC announcements have become trading opportunities.
In fact, under Federal Reserve Chairman Ben Bernanke, the Federal Reserve has become the most influential market maker in history.
Bob McTeer, the former president of the Dallas Federal Reserve, wrote in Forbes that investors are so glued to Fed actions they even react when minutes are released from an FOMC meeting - even when the meeting's outcome was already known.
"It used to be "buy on the rumor, sell on the news' or vice versa. Now it seems to be "sell on the news and sell again on the same news in slightly greater detail,'" wrote McTeer.