As I have expected, in the last Federal Open Market Committee meeting, which was
held today, December 13th, there were no surprises and Committee decided to
maintain its current monetary policy and didnt introduce a new stimulus plan
such as quantitative easing plan three. The FOMC stated in its statement that
the US is starting to show some economic progress as the labor market is
starting to show some signs of recovery even though the unemployment is still
high. The Committee still sees the U.S. economy growing at a slow pace (in the
third quarter the U.S. GDP grew by 2% (Q-o-Q)) in the quarters to come. The FOMC
issued a press release stating that the Fed will continue its long term
securities purchase plan and maintain the low interest rates of 0 to 0.25% at
least until mid-2013. Therefore the FOMC didnt come up with a new stimulus plan
despite the markets expectations of QE3. As a result, the precious metals prices
resumed their downward trend as gold and silver are traded sharply down along
with the Euro against the USD. Euros to US dollar exchange rate is currently
traded up at 1.3016 a
No comments:
Post a Comment