Dennis Lockhart

Food & Gas Prices Rattle Consumers. Does Fed Even Care About Inflation?

Stocks are up today (Dow +73, S&P +8) as global growth sentiment outweighs the “not-a-war” in Libya, fiscal crisis in Europe, Japan’s earthquake aftermath, and declining consumer sentiment. Bonds are slightly higher (10yr Note +3 basis points, FNMA 30yr 4% coupon +12 basis points) despite the stock rally and hawkish inflation statements from two Fed

Food & Gas Prices Rattle Consumers. Does Fed Even Care About Inflation?

Stocks are up today (Dow +73, S&P +8) as global growth sentiment outweighs the “not-a-war” in Libya, fiscal crisis in Europe, Japan’s earthquake aftermath, and declining consumer sentiment. Bonds are slightly higher (10yr Note +3 basis points, FNMA 30yr 4% coupon +12 basis points) despite the stock rally and hawkish inflation statements from two Fed

Fed: Overnight Rates Same, MBS Purchases Extended Through 1Q2010

The big news from today’s Fed meeting isn’t that they’re keeping overnight Fed Funds Rate the same at 0-.25% but that the mortgage bond purchase program is being extended through the first quarter of 2010. Same $1.25t target amount of purchases, but the extension gives markets more time to get used to less Fed help

FOMC Announcement: No Overnight Rate Change, Slight Inflation Bias

Below is the full text of the Fed’s FOMC decision from their two-day meeting that just ended. They kept short-term Discount and Fed Funds rates the same and said that ‘inflation will remain subdued for some time’ but this is a slight change from the April statement that said ‘sees some risk that inflation could

Fed Leaves Rates Alone, Signals Worst May Be Over?

Information received since the Federal Open Market Committee met in March indicates that the economy has continued to contract, though the pace of contraction appears to be somewhat slower. Household spending has shown signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit. Weak sales prospects and difficulties in

FOMC Leaves Rates Alone, Says They’ll Keep Buying Mortgage Bonds

The FOMC said that they will keep buying mortgage bonds according to their $500b by June schedule and also said they will keep going if necessary. They left rates alone. Mortgage bonds sold off heavily after the Fed meeting, ostensibly because they also said they’d buy long-term Treasuries as well, which contribute to already diluted