Fed rates: nothing

25 Jun

Posted by ReD as News

The Federal Reserve has left unchanged the amount of money with the fed funds rate still at 2% and the discount at 2.25 percent. The decision taken by the FOMC (Federal Open Market Committee), the operating arm of the Central Bank of the United States, after a meeting of two days, was widely expected by the market. However, the decision was not unanimous among the 10 members of the FOMC, nine voted in favor of 'rates unchanged, while Richard Fisher, president of the Dallas Fed, he would have preferred an increase in the cost of money.

With its decision, the Fed has put an end to the series of cuts in the cost of money started at the end of last summer, that marked the monetary policy more aggressively expansionary dell 'last two decades. "The FOMC is expected that 'inflation will moderate over the' year and next year," reads the statement accompanying the decision of the Committee headed by Ben Bernanke. 'However, in light of continuing increases in energy prices and other raw materials and the high level of some indicators of inflation expectations, uncertainty remains high on the scenario of' inflation '.

The leader in the Fed, Ben Bernanke and other central bankers have in the past reviewed the latest economic indicators - has written the agency Bloomberg - coming to the conclusion that the U.S. will probably avoid a real recession. "Although risks remain to the downside for growth - explains the note of the FOMC - these seem to be reduced to some extent, and the upside risks to the 'inflation and inflation expectations have increased." In the document the FOMC promises high vigilance: "The Committee - we read - continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability."

After the Fed's decision to list the Wall Street earnings have increased. Less than two hours at the end of the session, the Dow Jones rose by 78.25 points (+0.66%) at 11,885.68 points, while the Nasdaq gained 43.98 points (+1.86%) at 2412.32 points. Growth in the S & P 500, that of advancing 17.35 points (+1.32%) to 1331.64 points.

The licenses were to expire ten years, considered a benchmark in the industry, have lost ground yielding points 12/32 at 97 23/32 points, with yields rising to 4.16%, while the thirty-year backlog of 13/32 points to 95 4 / 32 points, with yields at 4.67 percent. The bond and two to five years stood down respectively at 99 and 99 points 13/32 points 27/32, with yields at 3.63% and 2.95 per cent.

On the currency market the euro has increased the gains on the dollar, while the U.S. currency continued to rise on the yen. The euro in the evening was traded at $ 1.5610, up $ 1.5585 to the 'opening up to $ 1.5579 and the' latest survey yesterday. The dollar is rising on the Japanese currency at 108.20 yen, against 107.94 and 107.90 yen yendell'apertura dell 'latest survey yesterday.