Federal Reserve Ben Bernanke Full Statment 21/9/11 - Operation Twist

Wednesday September 21,2011
WashingtonFOMC
Below is the text of the FOMC Statement, as released today:



Information received since the Federal Open Market Committee met in August indicates that economic growth remains slow. Recent indicators point to continuing weakness in overall labor market conditions, and the unemployment rate remains elevated. Household spending has been increasing at only a modest pace in recent months despite some recovery in sales of motor vehicles as supply-chain disruptions eased. Investment in nonresidential structures is still weak, and the housing sector remains depressed. However, business investment in equipment and software continues to expand. Inflation appears to have moderated since earlier in the year as prices of energy and some commodities have declined from their peaks. Longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee continues to expect some pickup in the pace of recovery over coming quarters but anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate. Moreover, there are significant downside risks to the economic outlook, including strains in global financial markets. The Committee also anticipates that inflation will settle, over coming quarters, at levels at or below those consistent with the Committee’s dual mandate as the effects of past energy and other commodity price increases dissipate further. However, the Committee will continue to pay close attention to the evolution of inflation and inflation expectations.

To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, 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 of Treasury securities with remaining maturities of 3 years or less. This program should put downward pressure on longer-term interest rates and help make broader financial conditions more accommodative. The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate.

To help support conditions in mortgage markets, the Committee will now reinvest principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities. In addition, the Committee will maintain its existing policy of rolling over maturing Treasury securities at auction.

The Committee also decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013.

The Committee discussed the range of policy tools available to promote a stronger economic recovery in a context of price stability. It will continue to assess the economic outlook in light of incoming information and is prepared to employ its tools as appropriate.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Sarah Bloom Raskin; Daniel K. Tarullo; and Janet L. Yellen. Voting against the action were Richard W. Fisher, Narayana Kocherlakota, and Charles I. Plosser, who did not support additional policy accommodation at this time.

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Bob Chapman - Kerry Lutz (FSRN) - September 21, 2011

Uploaded by bobchapmanradio on Sep 21, 2011

http://KerryLutz.com/

Bob and I continue the dialogue about the best ways to buy gold and silver and get the best deal. When buying anything, it almost always makes sense to get three prices. Get them quick and make sure the market isn't moving quickly. Also discussed is why man's best friend is becoming ever more important in this depression. You can no longer take your security for granted. Start thinking about securing your financial fortress and your family and home.

Please send all questions to khl@lutzasset.com.

Peter Schiff : Operation Twist Will Really Hurt

Uploaded by SchiffReport on Sep 21, 2011

Schiff Report Video Blog September 21st 2011
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What did Bernanke just do????

Uploaded by stellaconcepts on Sep 21, 2011

http://www.spotmex.com

Ben Bernanke, leader of the financial first world, has decided that he no longer wants his freshly printed money to slosh around the economy and has created a quasi USD black hole by flattening the yield curve, screwing the small banks that rely on an a well curved y