Monday, August 13, 2012

Morgan Stanley: The Odds Of A Surprise Fed Move Are Like The Odds Of NASA Finding Extraterrestrial Life




The Federal Reserve sent a mixed message on August 1 when it wrapped up its Federal Open Market Committee (FOMC) meeting.  Much to everyone's surprise, the committee did not announce QE3, an effort to lower borrowing costs through bond purchases.

However, it did add an interesting sentence in its FOMC statement: ”The Committee will closely monitor incoming information on economic and financial developments and will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.”

Eric Green of TD Securities and a number of other economists noticed it and noted that this was Greenspan-era speak…

Read more: http://www.businessinsider.com/morgan-stanley-fomc-easing-nasa-extraterrestrial-life-gdp-2012-8#ixzz23UPC4YbB

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