Remember ..Simon Says….well…here’s Fed Says….a keeper for posterity
U.S. FED CUTS BENCHMARK FED FUNDS RATE TO A TARGET OF ZERO TO 0.25 PCT
FED SAYS WEAK ECONOMIC CONDITIONS LIKELY TO WARRANT EXCEPTIONALLY LOW FED FUNDS RATE FOR SOME TIME
FED SAYS WILL EMPLOY ALL AVAILABLE TOOLS TO PROMOTE RESUMPTION OF GROWTH, PRESERVE PRICE STABILITY
FED SAYS TO SUPPORT FINANCIAL MARKET FUNCTION, STIMULATE ECONOMY THROUGH OPEN MARKET OPERATIONS
FED SAYS WILL BUY LARGE QUANTITIES OF AGENCY DEBT, MBS TO SUPPORT MORTGAGE AND HOUSING MARKETS
FED SAYS ALSO TO USE OTHER MEASURES THAT SUSTAIN ITS BALANCE SHEET AT HIGH LEVEL
FED SAYS STANDS READY TO EXPAND PURCHASES OF AGENCY DEBT, MBS AS CONDITIONS WARRANT
FED SAYS EVALUATING POTENTIAL BENEFITS OF PURCHASING LONGER TERM TREASURY SECURITIES
FED SAYS IN 2009 TO IMPLEMENT TERM ABS LOAN FACILITY TO EASE CREDIT TO HOUSEHOLDS, SMALL BUSINESSES
FED SAYS WILL CONTINUE TO CONSIDER WAYS OF USING BALANCE SHEET SUPPORT MARKETS AND ECONOMIC ACTIVITY
FED SAYS INFLATIONARY PRESSURES HAVE DIMINISHED APPRECIABLY, EXPECT INFLATION TO MODERATE FURTHER
FED SAYS LABOR MARKET CONDITIONS HAVE WEAKENED, SPENDING, INVESTMENT, PRODUCTION HAVE DECLINED
FED CUTS DISCOUNT RATE 3/4 PCT TO 0.5 PC
FED SAYS FINANCIAL MARKETS QUITE STRAINED, CREDIT TIGHT, OUTLOOK HAS WEAKENED FURTHER
FED VOTE TO CUT RATES WAS UNANIMOUS
……….if thats not Capitulation ?
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