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FOMC Statement

  • #1
  • First Post: Mar 21, 2007 1:18pm Mar 21, 2007 1:18pm
Quote
Release Date: March 21, 2007

For immediate release The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent.

Recent indicators have been mixed and the adjustment in the housing sector is ongoing. Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters.

Recent readings on core inflation have been somewhat elevated. Although inflation pressures seem likely to moderate over time, the high level of resource utilization has the potential to sustain those pressures.

In these circumstances, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Cathy E. Minehan; Frederic S. Mishkin; Michael H. Moskow; William Poole; and Kevin M. Warsh.
sounds hawkish to me...
Relax and be happy.
  • #2
  • Mar 21, 2007 1:21pm Mar 21, 2007 1:21pm
hmm, not sure what this dollar weakness is about, i might have to fade this if i see it run out of gas...
Relax and be happy.
  • #3
  • Mar 21, 2007 1:26pm Mar 21, 2007 1:26pm
i knew it would reverse... didnt like the way price stalled... -10 only on long swissy position.
  • #4
  • Mar 21, 2007 1:27pm Mar 21, 2007 1:27pm
wow look at the EURUSD go!

yesterday i thought we would get a negative dollar reaction to this statement, but i thought it would come from a subprime mention in the statement. i dont see that, however.
Relax and be happy.
  • #5
  • Mar 21, 2007 1:29pm Mar 21, 2007 1:29pm
here comes the reversal
Relax and be happy.
  • #6
  • Mar 21, 2007 1:29pm Mar 21, 2007 1:29pm
the markets received that as dovish because of the risk of rate cuts.
  • #7
  • Mar 21, 2007 1:31pm Mar 21, 2007 1:31pm
Quoting Scientist
the markets received that as dovish because of the risk of rate cuts.
where are you getting that from? i dont see any hint of a cut in the statement
Relax and be happy.
  • #8
  • Mar 21, 2007 1:31pm Mar 21, 2007 1:31pm
It's a case of sell the news I guess.
  • #9
  • Mar 21, 2007 1:34pm Mar 21, 2007 1:34pm
Quoting merlin
here comes the reversal
or not!

LOL
Relax and be happy.
  • #10
  • Mar 21, 2007 1:50pm Mar 21, 2007 1:50pm
Quoting merlin
where are you getting that from? i dont see any hint of a cut in the statement
quoted from bloomberg: "fed drops tightening bias" -- might means cut rates??
  • #11
  • Mar 21, 2007 1:51pm Mar 21, 2007 1:51pm
If I m not mistaken the initial reaction to the upside was as a result of the "end to the tightening bias" part of the statement or something similar....certainly that what I reacted to.....
  • #12
  • Mar 21, 2007 1:55pm Mar 21, 2007 1:55pm
It truly appears to me that the market is acting quite irrationally. Looks like USD/CHF has held ground so far. The other 2 sessions will take out support today...?
  • #13
  • Mar 21, 2007 1:56pm Mar 21, 2007 1:56pm
ok, here is what the dollar weakness is all about, specifically...

in the previous statement, that last paragraph reads...

Quote
The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.

and here is the last paragraph from new statement...

Quote
In these circumstances, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.

so you can see, the line "The extent and timing of any additional firming that may be needed" is not in the new one.

so indeed, this is a dovish statement.
Relax and be happy.
  • #14
  • Mar 21, 2007 1:59pm Mar 21, 2007 1:59pm
That was an awesome trade for me.
Hope everyone made out ok.
  • #15
  • Mar 21, 2007 2:07pm Mar 21, 2007 2:07pm
Quoting benajnim
That was an awesome trade for me.
Hope everyone made out ok.
congratulations on making bank. It was "awesome," but extremely tiring. I am exhausted.
  • #16
  • Mar 21, 2007 2:09pm Mar 21, 2007 2:09pm
that move was just plain ugly... look at the price action now we are in a total no trend stop hunt mode pure and simple....
  • #17
  • Mar 21, 2007 2:10pm Mar 21, 2007 2:10pm
the upward channel in the euro will take it to 3500... thats what i see from a chart standpoint the real highs are at the 4500 level...
  • #18
  • Mar 21, 2007 2:32pm Mar 21, 2007 2:32pm
Quoting enoc2g
look at the price action now we are in a total no trend stop hunt mode pure and simple....
I love days like this...
  • #19
  • Mar 21, 2007 2:39pm Mar 21, 2007 2:39pm
yeah, but only because you are a stop hunting bastard!!!

LOL!

Relax and be happy.
  • #20
  • Mar 21, 2007 2:43pm Mar 21, 2007 2:43pm
Maybe it's just me, but I'm seeing this move as technical. And the rate statement was the spark and volume provider.
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