The dollar steadied against other major currencies Monday on the eve of a Federal Reserve policy meeting expected to leave ultra-low interest rates unchanged. Against the Japanese currency, the US unit fetched 81.82 yen, a tick lower than 81.87 yen Friday. "The dollar was choppy today as US markets reopened and traders returned from the holiday weekend," Forex.com analysts said in a research note. US financial markets were closed in observance of Good Friday. Forex traders appeared to hedge their bets ahead of the two-day Federal Open Market Committee (FOMC) meeting that opens Tuesday. Central bankers are widely expected to maintain interest rates at between zero and 0.25 percent, where they have stood since December 2008 in a bid to boost recovery from recession. The FOMC panel also was expected to discuss whether the US economic recovery is strong enough to allow the Fed to wind down massive support. A $600 billion bond purchase program is due to end in June. "This … [Read more...] about Dollar steadies ahead of Fed rate-setting meeting
Federal open market committee meeting
Fierce debate expected at Fed policy meeting
WASHINGTON, Mar. 13 (AFP) - The US Federal Reserve's policy makers are expected to maintain benchmark interest rates at virtually zero percent at their meeting this week amid intense debate on how soon the central bank should tighten monetary policy. More than a year after the central bank slashed the federal funds rate to an unprecedented zero to 0.25 percent, economists said ultra-low rates were key to sustaining the fragile recovery from recession and easing high unemployment. But they expect a fierce debate at the Federal Open Market Committee meeting on Tuesday after signs of dissent emerged at the last meeting in January when it voted 9-1 to maintain rates "exceptionally low" for "an extended period." In voicing rare dissent, Kansas City Fed president Thomas Hoenig felt that policy makers should end the Fed's pledge since December 2008 to keep the fed funds rate -- at which banks charge each other for loans -- low "for an extended period." Analysts said the dissent raised … [Read more...] about Fierce debate expected at Fed policy meeting
Fed likely to stay course as Cyprus roils markets
The Federal Reserve looked set to keep its loose monetary policy in place this week as a shock Cyprus plan to seize bank deposits stoked fears of a reigniting eurozone banking crisis. The Fed was widely expected to announce Wednesday, after a two-day policy meeting, that it will continue to pump $85 billion a month into bond purchases to support the US economy. The Federal Open Market Committee also was all but certain to reiterate that its record-low interest rate, between zero and 0.25 percent, would remain until the labor market improves "substantially" in a context of price stability around 2.0 percent. Despite a string of encouraging data, particularly in jobs growth and the housing market, the economy remains too tepid for the FOMC policy makers to change course now, analysts say. Gross domestic product growth was merely 0.1 percent in the fourth quarter and although there are signs it has picked up, momentum was "modest to moderate" recently, according to the latest Fed … [Read more...] about Fed likely to stay course as Cyprus roils markets
Fed meets under gun to act on weak US economy
The Federal Reserve's policy board began a two-day meeting Wednesday to weigh a fresh response to the weak US economy and stagnant jobs market. The dollar fell against the euro and stock markets rose amid anticipation that the Federal Open Market Committee would decide on some form of monetary easing action. Options, analysts said, include a strong verbal statement by the FOMC committing themselves to holding their benchmark interest rate at the current near-zero level through 2015. But also possible is the launch of "QE3", a huge "quantitative easing" bond-buying program aimed at further depressing long-term interest rates. … [Read more...] about Fed meets under gun to act on weak US economy
Fed lowers U.S. economic outlook, open to further stimulus
The U.S. Federal Reserve on Wednesday downwardly revised its projection of the country's economic outlook and reaffirmed openness to further stimulating policy if needed. The economy is expected to grow by 1.6 to 1.7 percent in 2011 and 2.5 percent to 2.9 percent next year, said the U.S. central bank in an update projection released at a press conference after the meeting of the Federal Open Market Committee (FOMC), the interest rate policy making body of the Fed. … [Read more...] about Fed lowers U.S. economic outlook, open to further stimulus