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Posted by: thepinetree on 03/15/2020 03:14 PM Updated by: thepinetree on 03/15/2020 03:27 PM
Expires: 01/01/2025 12:00 AM
:

Fed Drops Rates to Zero & Announces QE Program Ahead of Monday Market Openings

Washington, DC...The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States. Global financial conditions have also been significantly affected. Available economic data show that the U.S. economy came into this challenging period on a strong footing. Information received since the Federal Open Market Committee met in January indicates that the labor market remained strong through February and economic activity rose at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Although household spending rose at a moderate pace, business fixed investment and exports remained weak. More recently, the energy sector has come under stress. On a 12‑month basis, overall inflation and inflation for items other than food and energy are running below 2 percent. Market-based measures of inflation compensation have declined; survey-based measures of longer-term inflation expectations are little changed.




Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The effects of the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook. In light of these developments, the Committee decided to lower the target range for the federal funds rate to 0 to 1/4 percent. The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals. This action will help support economic activity, strong labor market conditions, and inflation returning to the Committee's symmetric 2 percent objective.

The Committee will continue to monitor the implications of incoming information for the economic outlook, including information related to public health, as well as global developments and muted inflation pressures, and will use its tools and act as appropriate to support the economy. In determining the timing and size of future adjustments to the stance of monetary policy, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.

The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses and thereby promote its maximum employment and price stability goals. To support the smooth functioning of markets for Treasury securities and agency mortgage-backed securities that are central to the flow of credit to households and businesses, over coming months the Committee will increase its holdings of Treasury securities by at least $500 billion and its holdings of agency mortgage-backed securities by at least $200 billion. The Committee will also reinvest all principal payments from the Federal Reserve's holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities. In addition, the Open Market Desk has recently expanded its overnight and term repurchase agreement operations. The Committee will continue to closely monitor market conditions and is prepared to adjust its plans as appropriate.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Patrick Harker; Robert S. Kaplan; Neel Kashkari; and Randal K. Quarles. Voting against this action was Loretta J. Mester, who was fully supportive of all of the actions taken to promote the smooth functioning of markets and the flow of credit to households and businesses but preferred to reduce the target range for the federal funds rate to 1/2 to 3/4 percent at this meeting.

In a related set of actions to support the credit needs of households and businesses, the Federal Reserve announced measures related to the discount window, intraday credit, bank capital and liquidity buffers, reserve requirements, and—in coordination with other central banks—the U.S. dollar liquidity swap line arrangements. More information can be found on the Federal Reserve Board's website.

For media inquiries, call 202-452-2955.



Comments - Make a comment
The comments are owned by the poster. We are not responsible for its content. We value free speech but remember this is a public forum and we hope that people would use common sense and decency. If you see an offensive comment please email us at news@thepinetree.net
No Subject
Posted on: 2020-03-15 15:50:19   By: Anonymous
 
Good news, bad news.

Good news: the Fed and the government are going to do the best they can to keep the bottom of the economy from blowing out.

Bad news: this is going to hurt.

[Reply ]

All Economic Indicators Were Showing A Recession.
Posted on: 2020-03-15 15:59:54   By: Anonymous
 
With so many trucking cos, manufacturing cos going bankrupt, dry bulk shipping drastically down, all the signs of a recession were there, now with the shock of the world economies shutting down due to the Corona virus, it is now obvious that the world economy which was on life support is now going over the brink.
An economic depression is at hand.
So much for the booming economy happy talk which was a lie, according to the economic data - trucking, manufacturing orders, dry bulk shipping, which shows true economic activity and economic health touted by tRump's cheer leaders. This is the true fake news.

[Reply ]

    Re: All Economic Indicators Were Showing A Recession.
    Posted on: 2020-03-15 16:06:33   By: Anonymous
     
    Hopefully this will keep tRump from being reelected! Maybe a silver lining in this after all.

    [Reply ]

      Re: All Economic Indicators Were Showing A Recession.
      Posted on: 2020-03-15 16:36:47   By: Anonymous
       
      Trump will get reelected since your only other alternative would be Sleepy Joe who acts like a virus has attacked his brain and there is no cure for this Old F*ck!

      [Reply ]

    Re: All Economic Indicators Were Showing A Recession.
    Posted on: 2020-03-15 16:08:32   By: Anonymous
     
    The Fed acts like a drug addict.
    It's answer is to borrow from the future for today.
    No economy can survive so much staggering debt.
    Now the Fed admits QE is back.
    Will the Fed allow negative rates as Europe has gone.
    The house of cards is falling down. It has been propped up artificially for way too long.
    It is similar to any drug addict's behavior.

    [Reply ]

      Re: All Economic Indicators Were Showing A Recession.
      Posted on: 2020-03-15 16:28:50   By: Anonymous
       
      Obama was worse!

      [Reply ]

        Re: All Economic Indicators Were Showing A Recession.
        Posted on: 2020-03-15 17:18:41   By: Anonymous
         
        Obama was left a depression by bush or did you forget?

        [Reply ]

          Re: All Economic Indicators Were Showing A Recession.
          Posted on: 2020-03-15 17:22:48   By: Anonymous
           
          Obama handed Trump * a healthier economy you wart

          [Reply ]

            Re: All Economic Indicators Were Showing A Recession.
            Posted on: 2020-03-15 17:44:59   By: Anonymous
             
            Facts, history don't matter to tRumpers.

            [Reply ]

              Re: All Economic Indicators Were Showing A Recession.
              Posted on: 2020-03-15 20:42:16   By: Anonymous
               
              True....but how can they deny reality constantly?

              [Reply ]

                Re: All Economic things howing A Recession.
                Posted on: 2020-03-16 07:44:22   By: Anonymous
                 
                Obama destroyed this fine Country, made us very weak I;m surprised the Chinese did not bum-rush the west coast andthis Country so DIVIDED I'm surprised that we did not have some internal uprising between State! Yet you FOOLS keep bleating that is our current Commander in Chief?...Pitiful!

                [Reply ]

                  Re: All Economic things howing A Recession.
                  Posted on: 2020-03-16 13:29:16   By: Anonymous
                   
                  😂 you must have been walking in Charlottesville screaming “ J*ws will not replace.....who” guess what, you’re outdated, outnumbered, and atomwaffen has split up, so get off your Nazi couch. Trump * is starting to crack like a poor foundation under a crappy house. Eat garbage you Nazi 🐌!

                  [Reply ]

No Subject
Posted on: 2020-03-15 19:14:11   By: Anonymous
 
Trump responded, saying the market should be "thrilled" by the Feds surprise rate cut.

The market looked at it and saw it for what it is, the Fed capitulating in the face of a coming recession. The futures market seeing that has dropped over 1,000 points.

Tomorrow is going to be uuuuugggly.

Trump is totally anal, and at this point, there being nothing else he can't do or fail at, irrelevant.



[Reply ]

    Re:
    Posted on: 2020-03-15 20:05:20   By: Anonymous
     
    Hey where's our old buddy, the rich fukc who bragged about how well his 401 was doing, how great the economy was, how great trumpwad is doing? Don't hear to much from you lately Mr. Richguy..HAHAHAHAHAHAHAHAHAHA

    [Reply ]

      Re:
      Posted on: 2020-03-15 20:43:25   By: Anonymous
       
      I’m still rich, don’t worry, and you hear from me quite a bit still.

      [Reply ]

        NICE GUY = TRUMP
        Posted on: 2020-03-16 07:46:30   By: Anonymous
         
        ^Nice!

        [Reply ]

          Re: NICE GUY = TRUMP
          Posted on: 2020-03-16 17:36:04   By: Anonymous
           
          Obama was the best president in American history. Trump the worst in history. His gross incompetence is astounding. His response to his failure on the Coronavirus. Blame Obama and the Democrats . His credibility has been zero form day one .

          [Reply ]


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