Wednesday, September 21, 2011

Today's FOMC

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The Bloomberg News has never failed to provide fulfilling and quality contents. Of those, I recently found a prominent one. I assume that this illustrated the tough challenge the central banks currently face very well. Being focused on it’s next step, the Fed’s in a dilemma of whether to be a guardian of the price or to be a savior of the economy. This is what the “raison d’etre” of the Fed is.


Bernanke Joins King Tolerating Inflation
By Scott Lanman and Simon Kennedy - Sep 19, 2011 6:18 PM GMT+0900
Inflation flashing red may be less of a green light for higher interest rates as global growth falters. [ more ]



The Fed today is expected to launch the “Operation Twist (2.0)”. If so, my focus is on how it will be operated; the time span, the amount and so on. Though I’m personally interested in an explicit target ( Evans Strategy) and the Chairman Bernanke’s handling the FOMC after the three dissents.

       -----Fed Ponders Jobs, Inflation Targets

       -----Bernanke Is Tolerating Dissent but Pushing Past It


 
According to the Survey, any other option than the Operation Twist will have a slight or no possibility.

       -----Fed May Extend Duration of Treasuries With ‘Operation Twist,’ Survey Shows

       -----The Twist and Shout Should Be the Fed’s Next Maneuver: View




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