Archive for the ‘Financial Markets’ tag
Fed’s Evans Said U.S. Economy Faces Three-Front Battle
The downside risks to growth have recently risen and the economy is
expected to be “extremely sluggish” in 2008, according to one Fed
official on Friday.
Chicago Fed President Charles Evans (non-voter) said
the U.S. economy faces a triple-front threat as growth risks are on the
rise, inflation is “unsettingly high” and financial markets remain in
turmoil amidst depressed housing and auto markets.
FOMC Holds Target Rate at 2.00%, Says Inflation Outlook "Highly Uncertain"
The Federal Reserve announced Tuesday that it would
hold the Fed funds target rate at 2.00%, as was widely expected. The
accompanying statement was balanced between a concern for slowing growth
and elevated inflation levels.
In the growth paragraph, the FOMC said “economic activity expanded in
the second quarter, partly reflecting growth in consumer spending and
exports.” They said labour markets softened further and that “financial
markets remain under considerable stress”.
“Tight credit conditions…
Fed to Conduct Liquidity Operations Through January 2009, Introduces 84-Day TAF
In addition to the $75 billion 28-day Term Auction Facility (TAF), the
Fed will also be conducting a $25 billion 84-day TAF to address the
ongoing “fragility” of the financial system. The Fed
also said it would be extending its extraordinary lending to late January
2009.
“In light of continued fragile circumstances in financial markets, the
Board has extended the PDCF through January 30, 2009, and…”