Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (113505)	9/17/2015 8:23:56 AM
From: Pogeu Mahone	Respond to of 220188

Hating Jews has world wide participation with a competitive nature

To: Elroy Jetson who wrote (113505)	9/17/2015 2:43:43 PM
From: elmatador	Respond to of 220188

Fed holds fire on historic rate rise The Federal Reserve held interest rates at historic lows as concerns about an increasingly brittle global economy overshadowed evidence of a resilient US recovery.The US central bank maintained its 0 to 0.25 per cent target range for the federal funds rate, ending weeks of feverish speculation over whether it would raise rates for the first time since before the financial crisis It warned that recent developments in the global economy and markets, which have ben rattled by a slowdown in China’s economy, may “restrain [US] economic activity somewhat” as well as pushing down inflation in the near term. Interest rate forecasts from policymakers suggested most still expect that the first increase in short-term rates since 2006 will happen this year, but three officials now expect the Fed to hold fire until 2016, and one predicts no move before 2017. The Federal Open Market Committee’s decision suggests it wants more time to digest the economic impact of August’s violent moves in financial markets, as well as the extent of the slowdown in many emerging economies. It perpetuates the extended period of uncertainty in markets surrounding the timing of the Fed’s first rise, as the central bank gauges when it can finally follow through with its long-anticipated tightening of policy. The dollar dropped and Treasury yields fell after the announcement. “The wait for Godot goes on,” said Luke Bartholomew, a fund manager at Aberdeen Asset Management. “Janet Yellen’s caution won out over some of her more trigger-happy colleagues. There’s good reason for that caution. Inflation is almost non-existent and wage growth is lacklustre.” The decision to hold rates at zero to a quarter point suggests Fed policymakers remain fearful of crushing a recovery that they have gone to huge lengths to nurture, given the fierce headwinds from overseas, including a 15 per cent rise in the trade weighted dollar in the past year, volatile financial markets, weakening emerging market growth, and signs of a sharp slowdown in China’s economy. In its statement, the Fed said: “Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term.” While as in previous meetings the Fed said risks to the outlook were “nearly balanced”, it added on Thursday that it is “monitoring developments abroad”, in a hint that headwinds from overseas are playing on officials’ minds. The committee reiterated that it will move rates when it has seen “some further improvement” in the labour market and is reasonably confident that inflation will move back to the 2 per cent objective in the medium term. The decision to hold comes despite calls from central banks in some emerging markets for the Fed to bring an end to the endless speculation about its first increase in almost a decade. On the other side of the argument, both the International Monetary Fund and the World Bank have been calling for the Fed to hold fire, in part because of fears over the impact a rise could have on fragile emerging markets. The Fed only has two more meetings left this year — in October and December — if it is to meet chair Janet Yellen’s previous guidance that an increase is likely in 2015. One voter — Richmond Fed president Jeffrey Lacker — voted for a quarter-point rise at Thursday’s meeting. The Treasury market had rallied strongly ahead of the Fed’s announcement, anticipating the decision to refrain from tightening monetary policy. The two-year Treasury yield fell from 0.81 per cent earlier on Thursday to 0.73 per cent, and the 10-year government bond yield dipped by 6 basis points 2.23 per cent. The main dollar currency index plunged by 0.7 per cent, the most in almost a month, while the S&P500 index of US equities gained 0.4 per cent. Projections released with the statement showed that some 13 of Fed policymakers expect a rate rise in 2015, down from 15 previously. Three others are looking for firming to occur in 2016, and one further out in 2017. Officials’ median estimate for the federal funds rate was lowered this year to 0.375 per cent, indicating policymakers still expect one rise this year. The estimate for 2016 was 1.375 per cent, down from 1.625 per cent previously, while the 2017 estimate was 2.625 per cent, down from 2.875 per cent. The longer-run estimate for the funds rate was lowered a quarter point to 3.5 per cent, as many analysts expected, reflecting the continued headwinds facing the US economy. One policymaker advocated negative interest rates, projecting a range from zero to -0.25 per cent. Reflecting America’s resilient domestic economy, projected unemployment numbers were stronger across the forecast, with the median forecast rate tipped to fall below 5 per cent to 4.8 per cent in 2016 and 2017. Policymakers’ median estimate for the longer-run jobless rate was 4.9 per cent, down from 5 per cent previously. Fed policymakers lifted their economic forecast for 2015 on the back of this year’s steady activity numbers, pencilling in a median 2.1 per cent growth, up from 1.9 per cent previously. However growth estimates were pared back in 2016 to 2.3 per cent from 2.5 per cent — probably in part due to a stronger dollar. Inflation stripping out energy and food was also trimmed slightly to 1.7 per cent in 2016 and 1.9 per cent in 2017.