The markets didn’t like the Fed’s announcement today. When the FOMC announcement hit the tape at about 2:21 p.m., the market nose-dived. I think they were expecting more, such as a lower FF rate, or some QE, or reducing interest paid on bank reserves. Alas.
Here is a chart of the S&P 500 today. You [...]
The Fed announced Operation Twist today:
the Committee decided today to extend the average maturity of its holdings of securities. The Committee intends to purchase, by the end of June 2012, $400 billion of Treasury securities with remaining maturities of 6 years to 30 years and to sell an equal amount [...]
Eli Broad —“No one wants paper money — they want art.”
I know where all those Wall Street bonuses went: contemporary art. The latest auctions from Christie’s, Sotheby’s, and Phillips de Pury were for the most part blockbuster sales where the works of living and dead Contemporary artists reached new highs.
The Fed just released its latest Open Market Committee report and announced that fed funds rates will remain unchanged:
The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation [...]
Today the Fed announced that they are raising the discount rate, the rate at which banks can borrow emergency funds from the Fed, by 25 basis points, from 0.50% to 0.75%. They also raised the bid for the Term Auction Facility (TAF) loans, another emergency measure, from 0.25% to 0.50%. Also the term of primary [...]