The FED‘s statement today showed no surprises and the vote even was the same as Kansas Fed President Esther George voted NO in opposition to further monetary accommodation by the monetary authorities. James Bullard of the St.Louis Fed voted with the severe majority as did Chicago Fed President Charles Evans. The Bullard vote did not surprise as he has shown a pragmatic edge over the last several years but the consensus vote by Charles Evans was surprising. President Evans has been the most vocal proponent of increased Fed action over the last year when he was a non-voting FOMC member. Today’s negative number on the GDP should have provided Mr. Evans with a perfect excuse to push for a larger FED asset purchase program. At least Ms. George votes in a consistent manner with her rhetoric. The FOMC release opened with this phrase”… suggest that growth in economic activity paused in recent months, in large part because of weather-related disruptions and other transitory factors.” Again, as in years past, it is a spate of bad luck that has caused last quarters slowdown. Before it was the Tsunami in Japan which Bernanke termed “bad luck.”
Posts Tagged ‘durable goods’
Notes From Underground: In a Room of Academic Modelers, the Woman From Kansas Shows Some Backbone
January 30, 2013Notes From Underground: Even Chairman Bernanke Doesn’t Believe the Projections … On the Other Hand
April 25, 2012The FED provided the markets with everything and nothing at the same time. The FOMC STATEMENT was little changed from the last meeting although it wasn’t short of qualifiers. In discussing the HOUSING SITUATION the FED added the word “DESPITE” in noting signs of improvement the housing sector remains depressed. The FED wants to make sure that housing needs to be for more robust before the siren of all clear sounds (hence the word DESPITE). The FED noted that “STRAINS in global financial markets continue to pose significant downside risks to the economic outlook.”