The Federal Reserve’s policy making committee should have concluded their meeting in Washington a few moments ago and, unfortunately, we’re far away from a computer right now on the Beartooth Highway. We’ll probably listen in to Bloomberg Radio now and then to hear what happened, but won’t be able to provide any comments until later in the day.
It is probably safe to post the graphic to the right, the one that normally appears here on Fed meeting days, since a change in short-term interest rates isn’t likely.
It’s been updated to reflect last month’s decision to lengthen their extended low rate pledge to at least mid-2013.
Ben Bernanke’s easy money policies are really putting his predecessor to shame, something that few would have thought possible a few years ago.
By the time mid-2013 rolls around, that will make a whopping five-and-a-half years of ZIRP, a similar span last time around seeing rates climb back to 5.25 percent in mid-2006, yet another reminder of how unprecedented these times are.
Anyway, my guess is we’ll get “Operation Twist” today (for all the good that will do) and, perhaps, a change in the policy statement that hints at doing more (if necessary), but that the stock market will be disappointed by it all.
Bernanke should have never made those comments last time around about how higher stock prices are, effectively, the Federal Reserve’s third mandate.