Hello Traders,
For 2014 I would like to wish all of you discipline and patience in your trading!
FOMC notes from Econoday.com:
Emphasis was on the labor market which was upgraded with the comment, “Labor market conditions have improved , with the unemployment rate declining further.” But it was also noted, “a range of labor market indicators suggests that there remains significant underutilization of labor resources.”
The economy is seen as having rebounded from the anemic first quarter with household spending rising moderately and business fixed investment advancing. Housing is seen as remaining slow.
Inflation is closer to the Fed’s long-term goal and longer-term inflation expectations have remained stable.
Due to continued progress in the labor market, the FOMC decided to take a further measured reduction in asset purchases.
“Beginning in August, the Committee will add to its holdings of agency mortgage-backed securities at a pace of $10 billion per month rather than $15 billion per month, and will add to its holdings of longer-term Treasury securities at a pace of $15 billion per month rather than $20 billion per month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction.”
