The Federal Reserve has decided to once again place monetary policy on hold, but they did leave the door open to further quantitative easing as market turbulence posed threats to economic growth. The economy expanded moderately even though it was apparent that global growth was slowing and the unemployment rate remained stubbornly high.
For the second straight month, Chicago Fed President Charles Evans was the lone dissenter amongst the board suggesting that he was in favor of additional easing at the moment to stimulate a continued recovery.
The markets appear to be selling off upon receiving the Fed news, but we will have to wait and see how they may digest the news overnight. Also, it appears we will have to wait for another meeting to get any indication that QE3 might be around the corner. Those bullish on commodities are once again feeling some short-term pain. Please remember past performance is no guarantee of future results.
Eric Marvin
JPT121311-2050
