04/28/2010
As expected, the Federal Reserve’s Open Market Committee (FOMC) concluded its two-day meeting today by issuing the statement that there would be no change in interest rate policy. The Fed’s move comes as no surprise to any market observer, but what we all were waiting for was the Fed’s assessment on the economy.
On that front, the Fed basically cut and pasted the language from its last FOMC meeting, leaving the “extended period” language in with respect to current monetary policy. My read here is that rates will remain low, and that the Fed is in no hurry whatsoever to do anything that could jeopardize the fragile economic recovery.