The Federal Open Market Committee (FOMC), of the Federal Reserve, released the minutes of its last meeting (a couple of weeks ago) as well as its “Beige Book”. That is why the markets rebounded in the late afternoon; because the FED said that it might take action–and keep interest rates low–even as the Economy starts to rebound. Apparently, it doesn’t want another Recession. Of course not–and Inflation stays low.
The FOMC meets roughly ten times per year. Back in February, I had written a Post that discussed the Role of the FOMC. (Just Search FOMC on this Blog.) Generally, several weeks after if meets, The FED releases its “Beige Book”, which provides economic information from all twelve of the Federal Reserve Banks, with regard to their local Districts. The FOMC also provides some idea as to their actions, if any, or future options…or reasons why they are not taking action now.
The FED has been keeping the Fed Funds (or key interest) Rates between 0.00% and 0.25% for several years and, today, pledged to keep them in that range through the end of 2014. It has also suggested that it can buy bonds to increase liquidity in the Financial System. That wording comforted the Financial Markets. My question remains: are Worldwide Markets–and Central Banks–going to be on the same page?