fed opens meeting amid easing chatter
Last Updated : GMT 12:42:12
Arab Today, arab today
Arab Today, arab today

Fed opens meeting amid easing chatter

Arab Today, arab today

Arab Today, arab today Fed opens meeting amid easing chatter

Washington - AFP

The Federal Reserve opened its first meeting of the year Tuesday amid speculation the central bank could move faster than expected to tighten monetary policy this year. But divining the direction of policy will also be challenged by the arrival of four new voting members to the 12-strong Federal Open Market Committee policy panel under an annual rotation of regional Fed presidents. Analysts expected the FOMC, led by chairman Ben Bernanke, would announce no change in policy tack at the conclusion of the two-day meeting Wednesday. At the December 11-12 meeting, the central bank boosted its asset purchases to $85 billion a month, on an open-ended basis. It also set for the first time unemployment and inflation targets for curbing stimulus and signaled that it expected to hold its benchmark interest rate at the current ultra-low level through mid-2015. But minutes of the FOMC meeting exposed divisions among policymakers over how long to keep policy accommodative, with some suggesting a tightening may be warranted as early as this year. "Expectations for the Fed have shifted significantly in the past couple of weeks, which in turn has moved the bond market," said Chris Low at FTN Financial. "The market now expects the Fed will raise rates in Q4, 2014." The FOMC meeting comes sandwiched in a week packed with economic data. Early Wednesday payrolls firm ADP will report on January job growth and the government will provide its first estimate of 2012 fourth-quarter economic growth. On Friday, the highly anticipated January jobs report is expected to show the unemployment rate slipped a tenth point to 7.7 percent, well above the Fed's benchmark 6.5 percent jobless rate to tighten policy. "The FOMC undoubtedly will get a preview of Friday's monthly non-farm payroll numbers for policy consideration, thus some investors will be looking at the FOMC statement for hints as to what the Bureau of Labor Statistics may report Friday morning," said Fred Dickson at DA Davidson & Co. Inflation remains tame, just below 2.0 percent, as the economy still struggles to recover more than three years after exiting the Great Recession. The Fed benchmark is 2.5 percent. But Kathy Lien at BK Asset Management said the four newcomers to the FOMC tilt toward a more hawkish stance than the four exiting. Two newcomers, Charles Evans of the Chicago Fed branch and Eric Rosengren of Boston, are believed less worried about low interest rates fueling a burst of price rises. But incoming Esther George, from the Kansas City Fed, and James Bullard of the St. Louis Fed, have both expressed concerns that the Fed's ultra-loose monetary policy will stoke inflation. "This implies that the new voting members of the FOMC may be a bit more eager to phase out asset purchases this year than previously anticipated. Unfortunately we won't know if additional members supported this idea until the minutes are released on February 20th," Lien said. Mufteeva Inna of Natixis said that even if George openly votes against current Fed policy, "the rotation is not likely to change anyhow the pursuit of the already announced monetary policy measures." Overall, analysts did not expect any bombshells from the FOMC's post-meeting statement, expected at 1915 GMT. "Markets are focused now on how long the current long-term asset purchase program will last and we think the minutes of the FOMC meetings will prove more telling than the statements," analysts at Nomura Global Economics said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

fed opens meeting amid easing chatter fed opens meeting amid easing chatter

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

fed opens meeting amid easing chatter fed opens meeting amid easing chatter

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today The Big Apple bike boom

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Leaders of Russia, Iran, Turkey meet

GMT 10:12 2017 Wednesday ,22 November

Leaders of Russia, Iran, Turkey meet
Arab Today, arab today 'Advanced' cyber attack targets Saudi Arabia

GMT 10:18 2017 Wednesday ,22 November

'Advanced' cyber attack targets Saudi Arabia
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Singer Jahda Wahba has unlimited ambitions

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 13:41 2017 Tuesday ,21 November

French choke up over proposal

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday