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Wednesday, August 1, 2012

Breaking News ... Fed Stands Pat for Now

Fed downgrades economy view, doesn't alter policy  has the breaking news story:

"The Federal Reserve on Wednesday downgraded its view on the economy but otherwise didn't make make any changes to its key interest rate, low-rate pledge, or asset-buying plans. The Federal Open Market Committee now says "economic activity decelerated somewhat over the first half of the year," vs. a prior description of saying the "economy has been expanding moderately." The decision not to extend its low-rate pledge beyond the current "late 2014" came as a surprise. The Fed kept its federal funds rate target between 0% and 0.25% and said it "will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability." The vote was 11-1, with Richmond Fed President Jeffrey Lacker preferring to omit the time period over which economic conditions are likely to warrant an exceptionally low rate."

More to come.

Thanks. Bob.

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