The Federal Reserve’s policy tweaks are so small as to be almost invisible in today’s statement
Talk about fine-tuning. The changes in wording—let alone any shift in policy—made in today’s 12:30 statement from the Federal Reserve’s Open Market Committee are miniscule.
So, for example, today the Fed said “Despite some signs of improvement, the housing sector remains depressed…” while in its last statement on March 13 it noted that “The housing sector remains depressed…”
Inflation has picked up somewhat, according to today’s statement, but the increase is expected to be temporary. Last month, the Fed said inflation was subdued.
And here’s my favorite big change: In March the Fed said it expects moderate growth over coming quarters but today it said it expects growth to remain moderate over coming quarters and then to pick up gradually.
In short, nothing here to send those betting on Federal Reserve easing off to buy gold and nothing to drive those worried about growth kicking off higher inflation to sell their Treasuries.
The Federal Reserve did confirm its promise to keep rates at 0% to 0.25% through the end of 2014.
Federal Reserve Chairman Ben Bernanke is scheduled to give his regular post-meeting press conference today at 2:15.
Masochists can watch it live on the Federal Reserve website http://www.federalreserve.gov/ .
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