Martes 09/08/11 La decision del Fed (operation twist)

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[Ed_Alex]

Fed Open Market Committee: "Extended period" isn't enough; rates will be near-zero until mid-2013 at least. Growth much slower than expected

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[jonibol]

Viendo el vaso medio lleno: es desaceleración, no recesión.

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Yields up 2.32%

+84.84

[admin]

Por lo menos dio seguridad de que los intereses no se subiran hasta el 2013.

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+78.56

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Au up 1,752

+45.90

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El oro y el euro subieron.

Oil down 79.20

[admin]

Fed Pledges Low Rates Through 2013

By LUCA DI LEO And JEFFREY SPARSHOTT
The U.S. Federal Reserve Tuesday signaled it plans to keep its benchmark short-term interest rate close to zero for at least another two years as it sharply downgraded its view of the U.S. economy.

In a statement after a one-day policy meeting, Fed officials said they expect the weak economy to warrant exceptionally low levels for the federal funds rate "at least through mid-2013." Seven voted in favor of this action, with three voting against.

While not the bold step to buy more bonds that some in the markets were hoping for, the move may help keep borrowing rates low and drive investors into riskier assets like stocks. The Dow Jones Industrial Average was up in volatile trade Tuesday, after suffering its biggest one-day decline since the 2008 crisis on Monday.

Officials Tuesday also downgraded their assessment of the U.S. economy for the third time this year, saying that economic growth so far this year has been "considerably slower than the Committee had expected."

Anxiety about a new economic downturn has increased recently, after data showed the economy grew by less than 1.0% in the first half and the U.S. saw its top-notch debt ratings downgraded for the first time. That has put pressure on the the Fed to act, but its options are limited because short-term interest rates are already close to zero and the most powerful tool it has left -- buying more securities -- runs the risk of causing too much inflation.

Fed officials discussed a range of policy tools to boost the economy, the statement said. Some analysts were expecting the central bank to say it expects its balance sheet to remain large for an extended period as well.

Since 2008, the central bank has been telling markets it wouldn't raise short-term rates for an "extended period," meaning at least several more months. Extending that for at least another two years may help lift the economy.

With the unemployment rate still above 9.0% in July, Fed officials sounded less certain than they were in June that the slowdown seen in the first half will be temporary.

A bolder move to further expand the size of the Fed's portfolio by launching a third round of securities purchases, dubbed QE3, would have been harder to justify at this stage. Fed officials are divided on the merits of the $600-billion Treasury purchase program that ended in June, known as QE2, and several worry another round now would lead inflation to rise too much.

Fed Chairman Ben Bernanke signaled to Congress last month he was prepared to act if the economy remained weak. But he also indicated that, in order to buy more bonds, the Fed would have to see a risk of prices and wages dangerously falling on the back of the economy's weakness. Though there have been hints that consumer prices are cooling off, several measures of inflation remain above the Fed's informal target of close to 2.0%.

Mr. Bernanke and U.S. Treasury Secretary Timothy Geithner joined top economic officials from the world's largest economies Sunday to discuss how to calm fears over the global economy after Standard & Poor's downgraded the U.S. credit rating and as Europe's debt crisis intensified. The European Central Bank subsequently bought Italian and Spanish bonds to prevent the crisis from spreading.

Mr. Bernanke won't be holding a press conference after Tuesday's FOMC meeting, something he started doing on a quarterly basis this year to better explain the Fed's actions. His next big public appearance is expected to be Aug. 26 in Jackson Hole, Wyo., where policymakers from around the world will discuss how they can make their economies grow in the long run.

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El Franco suizo subio 3% frente al dolar durante el dia. Historico.

Oil down 78.68

[admin]

Los 3 que no estuvieron de acuerdo no querian especificar la fecha cuando se subirian los intereses.

Au up 1,767 y subiendo mas.

Gross pide que Obama le diga al congreso que regrese a trabajar.