The Fed apparently sees light at the end of the tunnel. That’s the conclusion you’d draw from the headlines at least. Fed Sees Signs Recession Easing (WSJ); Fed Cites Easing of Downturn and Affirms Policy (NYT); Fed sees signs recession may easing (sic) (LAT)
Forgive me if I leave the prosecco in the ‘fridge for now.
Following the FOMC meeting, the Fed said it won’t expand its bond purchase program. It said household spending has shown signs of stabilizing, and mortgage and inter-bank lending rates have fallen recently.
Still, the Fed said it won’t touch interest rates for now, it added “ongoing job losses, lower housing wealth and tight credit” will continue to constrain spending, and the economy will likely remain weak for a time.
Bloomberg scored the pithiest quote on the supposed recovery, from Robert Eisenbeis, a former Atlanta Fed research director who is now chief monetary economist for Vineland, New Jersey-based Cumberland Advisors.
“There’s been lots of talk about ‘green shoots … you can find a lot of dead leaves too.”
’nuff said.
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