WASHINGTON (Reuters) - Federal Reserve officials believed in September the struggling recovery might soon need more help, and they discussed several ways to provide support, including the possible adoption of a price-level target.Read the rest here.
Policy-makers had a "sense that (more) accommodation may be appropriate before long," the central bank said on Tuesday.
In minutes of the its last policy-setting session held September 21, the Fed said officials discussed several approaches to aiding the economy but focused on buying additional longer-term Treasury securities and ways to nudge the public into expecting higher levels of inflation in the future.
On Wall Street, stocks trimmed their losses, with both the Dow Jones industrial average (DJI:^DJI - News) and the Standard & Poor's 500 Index (^SPX - News) briefly turning higher after the FOMC's minutes came out.
To help shift inflation expectations, policy-makers debated providing more detailed information about what rates of inflation they would prefer, or the possibility of making clear they would tolerate a higher level of inflation on a temporary basis, a policy approach known as price-level targeting.
They also discussed the possibility of targeting a path for GDP growth.
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1 comment:
And today the markets reacted. Gold set a new nominal high and silver crossed the $24 an ounce mark.
It's amazing that the FED is just doing more of the same that they've been doing all along, because obviously that has been working for the country (not in the least).
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