Ben Bernanke & co. are meeting in three-and-a-half weeks, and if Congress doesn’t get its shit together with enough time for them to digest the shutdown-delayed jobs report, they’ll probably just have to punt on bond-buying until the following FOMC meeting in mid-December, because there’s simply no other way to know what the jobs picture looks like without that report. Read more »
The Great Taper and other myths and legends
A regional Fed bank president and a man of many enthusiasms suggest that there will be no taper in your trick-or-treat bag or under your Christmas tree. Read more »
Yea, we know: This was it. This was going to be the Fed Open Market Committee meeting that would mark the beginning of the end of QE3. Everyone (well, almost everyone) was sure of it. Until, like all of the previous meetings that were supposed to mark the beginning of the end, it didn’t.
The Federal Reserve postponed any retreat from its long-running stimulus campaign Wednesday, saying that it would continue to buy $85 billion a month in bonds to encourage job creation and economic growth.
As Congressional Republicans and the White House hurtle toward another showdown over federal spending, the Fed said it was concerned that fiscal policy once again “is restraining economic growth,” threatening to undermine what the Fed had described just months ago as a recovery gaining strength….
“The tightening of financial conditions observed in recent months, if sustained, could slow the pace of improvement in the economy and the labor market,” it said in a statement released after a regular two-day meeting of its policy-making committee.
The decision, an apparent victory for the Fed’s chairman, Ben S. Bernanke, and his allies who have argued for the benefits of asset purchases, was supported by all but one member of the Federal Open Market Committee. Esther George, president of the Federal Reserve Bank of Kansas City, dissented as she has at each previous meeting this year, citing concerns about inflation and financial stability.