by Bill McBride on 8/01/2012 09:36:00 PM
Wednesday, August 01, 2012
From Jon Hilsenrath and Kristina Peterson at the WSJ: Wary Fed Is Poised to Act
The Federal Reserve is heading toward launching a new round of stimulus to buck up the weak economy, but stopped short of doing so right away.The Fed has been saying "soon" for months.
The decision to make what amounted to a conditional promise of action came Wednesday at the end of the central bank's two-day policy meeting. In an uncharacteristically strong statement, the Fed said it will "closely monitor" the economy and "will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions." Translation: The Fed will move if growth and employment don't pick up soon on their own.
• At 7:45 AM ET, the European Central Bank (ECB) will announce their decision on rates. The key is the after meeting press conference. From the FT Alphaville:
Any further policy action would be announced during Draghi’s subsequent press conference. To recap, the likeliest options seem to be: another rate cut (note that earlier time), a revived Securities Markets Programme, and then (getting quite a bit less likely) another LTRO, approval of an eventual banking license for the ESM, or a yield targeting framework for bond-buying.• At 8:30 AM, the initial weekly unemployment claims report will be released. The consensus is for claims to increase to 370 thousand from 353 thousand last week.
• At 10:00 AM, the Manufacturers' Shipments, Inventories and Orders (Factory Orders) for May will be released. The consensus is for a 0.7% increase in orders.
I'll also post an employment preview tomorrow too.
Posted by Bill McBride on 8/01/2012 09:36:00 PM