Reply #57: Fed speak

[54anickel]

Text of FOMC statement
http://www.marketwatch.com/news/story/text-fomc-statement/story.aspx?guid=%7BA1A77E16-593F-4B82-8E2E-83E613EA8E79%7D


Fed keeps interest rates on hold
FOMC sees firmer growth, more moderate inflation

http://www.marketwatch.com/news/story/fed-hold-sees-firmer-growth/story.aspx?guid=%7B24A1B5AF-8DE1-4FEC-AD6D-74F3E08CBF4C%7D

WASHINGTON (MarketWatch) - The Federal Reserve held overnight interest rates steady for the fifth straight meeting on Wednesday, seeing little reason to act as the economy looks stronger and inflation is declining gradually.
In the statement, the Federal Open Market Committee that inflation risks remain and that additional tightening may be needed.
The statement following the meeting acknowledged both firmer growth and more moderate inflation. "Overall, the economy seems likely to expand at a moderate pace over coming quarters," the committee said.
"Some tentative signs of stabilization have appeared in the housing market," the committee said.
On inflation, the committee said "readings on core inflation have improved modestly in recent months, and inflation pressures seem likely to moderate over time. However, the high level of resource utilization has the potential to sustain inflation pressures."
The vote was unanimous.
Fed watchers hadn't been expecting anything too exciting from the meeting. They said the economic environment of moderate growth and declining inflation allowed the FOMC to be patient. Fed officials have said they believe rates are well-positioned to respond to any change in the underlying economy. Read MarketWatch's complete Fed coverage.
In recent weeks, the market's expectations for rate cuts later this year have evaporated as the economic data have turned brighter. Indeed, the market now sees a small chance of a rate hike in the summer.
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