Excerpt from: GFT Analysts in the News
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| January 28, 2009 | | Investors more interested in what the FOMC has to say about the economy |
Right now, the Federal Open Market Committee (FOMC) is having a meeting. Up for discussion? Probably not the interest rate. Right now, the rate is set at between 0% and 0.25%. And the Fed has expressed a desire to keep it that way for a few months.
So why is the FOMC meeting?
Well, it has to retain its relevancy somehow. The FOMC will continue with regular meetings so that it can issue statements on the health of the economy. Additionally, the FOMC is likely to announce measures that illustrate a desire to help with economic stimulus.
Today, there is speculation that instead of an interest rate announcement, we will get a plan for the Fed to start buying Treasuries. This is by no means certain, but there has been interest expressed in having the Fed buy long-term securities in order to help loosen the flow of money through the markets. We will have to wait for the announcement to see whether this actually happens, though.
| Topic Tags: economic stimulus, economy, Fed announcement, Fed buying Treasuries, FOMC, forex trading, interest rates, Treasuries | |
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