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Wednesday, July 28, 2021
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Fed Stays the “Whatever it Takes” Course

#Fed #interestrates #stimulus #economy #virus

$DIA $SPY $QQQ $RUTX $VXX

The Fed kept its dovish monetary policy intact Thursday and pledged again to do whatever it takes in coming months to sustain a US economic recovery threatened by a spreading virus chaos.

The policy statement released after the US central bank’s latest two-day meeting did not mention the election.

In his presser after the release of the statement, Fed Chairman Powell said the US economy is recovering more slowly after being boosted earlier in the year by fiscal aid and the re-opening of some businesses.

The overall rebound in household spending owes in part to stimulus payments and expanded unemployment benefits, which provided essential support to many families and individuals,” Chairman Powell told reporters.

He said the recent rise in coronavirus infections in the United States and abroad was “particularly concerning.”

A full economic recovery is unlikely until people are confident that it’s safe to reengage in a broad range of activities,” Chairman Powell said.

In a statement virtually unchanged from the 1 issued at its September policy meeting, the Fed’s policy-setting Federal Open Market Committee (FOMC) repeated its pledge to use its “full range of tools” to support the economy, and promised not to consider raising interest rates until maximum employment had been restored and inflation was heading above its 2% target.

Economic activity and employment have continued to recover but remain well below their levels at the beginning of the year,” it said in a unanimous statement which left the central bank’s Key overnight interest rate unchanged at near Zero. “The COVID-19 pandemic is causing tremendous human and economic hardship across the United States and around the world.”

The Fed said it would continue buying “at least” $120-B per month in government bonds and use its other tools and programs as needed depending on how the economy evolves. The market response was positive.

Thursday, the benchmark US stock market indexes finished at:
DJIA+542.52 at 28390.12, NAS Comp +300.15 at 11890.86, S&P 500 +67.01 at 3510.59

Volume: Trade on the NYSE came in at 928-M/shares exchanged

HeffX-LTN’s overall technical analysis for the major US stock market indexes is Very Bullish in here.

  • NAS Comp +32.5% YTD
  • S&P 500 +8.7% YTD
  • DJIA -0.5% YTD
  • Russell 2000 -0.5% YTD

Looking Ahead: Investors will receive the Employment Situation Report for October, Consumer Credit for September, and Wholesale Inventories for September Friday.

Have a healthy day, Keep the Faith!

Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   

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