Extending Extended

 
Observation Deck
July 01, 2010 Posted by:

The Federal Open Market Committee has once again reiterated the proverbial “extended” remark, regarding leaving the target interest rate unchanged in the range of zero to 0.25 percent. The Fed in its June 23 meeting kept the benchmark rate at this level, where it has remained since December 2008. and any hope for a change in language will have to wait for yet another meeting. The “extended period,” however, provides little insight into when the Fed will actually move rates. It is becoming more likely that the first rate increase is about a year away. This expectation revolves around several factors. These include:

  • European Debt Crisis
  • Mixed Economic Indicators
  • Regulatory Environment

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Minh Trang
Minh Trang
Portfolio Manager
SVB Asset Management
Location: San Francisco, CA
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