As expected, the Federal Open Market Committee made no alteration today
to its administered interest rates. The target rate on federal funds remains
at 1%. (See later table for policy actions from 2001 through today.)
From a policy standpoint, the key section(s) of today's post-meeting
statement read:
"...Although job losses have slowed, new hiring has lagged."
The above is somewhat less optimistic in tone than last time around. And
...
"...The Committee believes that it can be patient in removing its policy
accommodation."
The above is virtually unchanged, and it is against this that Wall Street
stock bulls will try hard to rally the market.
For those wishing to read the communique in its entirety, it may be
accessed using the following link:
http://www.federalreserve.gov/boarddocs/press/monetary/2004/20040316/default.htm
----------------------------------------------
2004-2001 SCHEDULED MEETINGS OF THE FEDERAL
OPEN MARKET COMMITTEE AND POLICY ACTIONS TAKEN
----------------------------------------------
2004
Thru 3/16 Meeting: 1.00% 2.00%
Opening '04 Levels: 1.00% 2.00%
----------------------------------------------
Action Taken On
Meeting --------------------------------
Date Fed Funds Rate Discount Rate
----------------------------------------------
03/16 REGULAR MEETING, No Action Taken
February NO SCHEDULED MEETING ------------>
01/27-28 REGULAR MEETING, No Action Taken
==============================================
2003
Closing Levels: 1.00% 2.00%*
Opening Levels: 1.25% 0.75%
----------------------------------------------
12/09 REGULAR MEETING, No Rate Action;
policy bias shifted to a neutral
stance, the first step towards
possible rate increases in 2004.
November NO SCHEDULED MEETING ------------>
10/28 REGULAR MEETING, No Action Taken
09/16 REGULAR MEETING, No Action Taken
08/12 REGULAR MEETING, No Action Taken
July NO SCHEDULED MEETING ------------>
06/24-25 REGULAR MEETING, Action Taken:
-25BP to 1.00% -25BP to 2.00%*;
policy bias left unchanged, leav-
door open to possible additional
rate cut(s).
05/06 REGULAR MEETING, No Rate Action;
policy bias shifted to favoring
possible additional rate cut(s).
April NO SCHEDULED MEETING ------------>
03/18 REGULAR MEETING, No Action Taken
February NO SCHEDULED MEETING ------------>
01/28-29 REGULAR MEETING, No Action Taken
----------------------------------------------
*Method for setting Discount
Rate changed during 2002.
==============================================
2002
Closing Levels: 1.25% 0.75%
Opening Levels: 1.75% 1.25%
----------------------------------------------
12/10 REGULAR MEETING No Action Taken
11/06 REGULAR MEETING, Action Taken:
-50BP to 1.25% -50BP to 0.75%;
policy bias shifted to "neutral."
October NO SCHEDULED MEETING ------------>
09/24 REGULAR MEETING, No Action Taken
08/13 REGULAR MEETING, No Rate Action;
policy bias shifted to favoring
possible additional rate cut(s).
July NO SCHEDULED MEETING ------------>
06/25-26 REGULAR MEETING, No Action Taken
05/07 REGULAR MEETING, No Action Taken
April NO SCHEDULED MEETING ------------>
03/19 REGULAR MEETING, No Rate Action;
policy bias shifted to "neutral"
February NO SCHEDULED MEETING ------------>
01/29-30 REGULAR MEETING, No Action Taken
==============================================
2001
Closing Levels: 1.75% 1.25%
Opening Levels: 6.50% 6.00%
----------------------------------------------
12/11 REGULAR MEETING, Action Taken:
-25BP to 1.75% -25BP to 1.25%
11/06 REGULAR MEETING, Action Taken:
-50BP to 2.00% -50BP to 1.50%
10/02 REGULAR MEETING, Action Taken:
-50BP to 2.50% -50BP to 2.00%
09/17 NO MEETING, Interim Action Taken:
-50BP to 3.00% -50BP to 2.50%
08/21 REGULAR MEETING, Action Taken:
-25BP to 3.50% -25BP to 3.00%
July NO SCHEDULED MEETING ------------>
06/26-27 REGULAR MEETING, Action Taken:
-25BP to 3.75% -25BP to 3.25%
05/15 REGULAR MEETING, Action Taken:
-50BP to 4.00% -50BP to 3.50%
04/18 NO MEETING, Interim Action Taken:
-50BP to 4.50% -50BP to 4.00%
April NO SCHEDULED MEETING ------------>
03/20 REGULAR MEETING, Action Taken:
-50BP to 5.00% -50BP to 4.50%
Feb. NO SCHEDULED MEETING ------------>
01/30-31 REGULAR MEETING, Action Taken:
-50BP to 5.50% -50BP to 5.00%
01/04 NO MEETING, Interim Action Taken:
-25BP to 5.50%
01/03 NO MEETING, Interim Action Taken:
-50BP to 6.00% -25BP to 5.75%
----------------------------------------------
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