Thursday, March 17, 2011

Fed Hints Further Stimulus Not Necessary

Noting that the US economy is on “firmer footing” and an improved employment outlook, the tone of yesterday’s Federal Open Market Committee statement was decidedly optimistic in comparison with recent messages. Some analysts are reading this as a hint that the Fed feels additional stimulus spending will not be necessary.

“Certainly, this is the most optimistic Fed officials have sounded since asset purchases began in November and, at a minimum, that’s consistent with the expectation there will be no third round of purchases,” said Jim O’Sullivan, chief economist at MF Global Inc. in New York.

Source: Bloomberg

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