KEY POINTS: * In a statement, the Fed scaled back its assessment of the pace of recovery, taking note of pockets of weakness, and also issued a cautionary note about volatile financial markets in light of Europe’s debt woes. * As expected, the Fed held overnight rates in the zero to 0.25 percent range set in December 2008 as the central bank fought the deep recession and virulent financial crisis. * Kansas City Federal Reserve Bank President Thomas Hoenig dissented for the fourth meeting in a row.
KEITH SPRINGER, PRESIDENT, SPRINGER FINANCIAL ADVISORS, SACRAMENTO, CALIFORNIA:
“The FOMC statement didn’t say anything out of the ordinary and this is the problem. The problem is that they are not fighting this like a war… Instead of saying they will keep low rates for a extended period of time, they need to get more aggressive in their language in order to combat deflation or any negative economic cycle that we are in.”
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