NewsMine — economy — united-states — 2004 — 2004-jan-mar — Viewing Item

Reactions to fed rate left unchanged Original Source Link: (May no longer be active)    http://www.reuters.com/financeNewsArticle.jhtml?type=economicNews&storyID=4580767 http://www.reuters.com/financeNewsArticle.jhtml?type=economicNews&storyID=4580767 Economic UPDATE 1-INSTANT VIEW-Debt/forex reaction to US Fed statement Tue Mar 16, 2004 02:29 PM ET NEW YORK, March 16 (Reuters) - The following are comments from debt and currency market analysts on Tuesday after the U.S. Federal Reserve left interest rates unchanged, as expected, and made almost change to the wording of its statement on monetary policy from its last meeting. U.S. stock, bond and currency markets were little changed. In its statement, the Federal Reserve again said it could be "patient" in ending the current accomodative policy. ANTHONY CHAN, CHIEF ECONOMIST, BANC ONE INVESTMENT ADVISORS, CLEVELAND: "Given that the job growth is so week, the Fed is not going to be raising rates any time soon. Even with the labor market improving, no one is expecting any sharp improvement any time soon. So this language is still dovish, even though the Fed adopted a neutral bias with regards to inflation." RICHARD FRANULOVICH, SENIOR CURRENCY STRATEGIST, WESTPAC BANKING CORP, NEW YORK: "Looks like the Fed is no longer offering an optimistic outlook on the labor market. Recall that in the last statement the Fed said other indicators are leading to an improvement in the labor market. The Fed has dropped that completely and now all they're saying is that the labor market is lagging. So the Fed is less bullish on the labor market. So this statement is mainly dollar-negative." STEVE RICCHIUTO, CHIEF U.S. ECONOMIST, ABN AMRO, NEW YORK: "They really didn't add much at all. They took out 'robust' of economic activity and replaced it with 'solid.' On jobs, they were a little bit more cautious, but not much. I don't think there's really anything in here to cause any issues." LARA RHAME, SENIOR ECONOMIST AT BROWN BROTHERS HARRIMAN: "The market had clearly been expecting another round of tinkering with the statement that moved the Fed a baby step closer to a rate hike. They didn't get it. The lack of a shift was a little dollar negative." FRANK NOTHAFT, CHIEF ECONOMIST, FREDDIE MAC, MCLEAN VIRGINIA: "That's not much of a big surprise. It was pretty what everyone has been expecting given that lousy labor report for February released on March 5. "The Fed has said in the past it can be patient regarding monetary policy. We expect the Fed will keep the federal funds target at 1 percent through the next few months and perhaps through to the end of the year." © Reuters 2004. All Rights Reserved.

Adds fewer jobs than expected Blue chips in the red Bush says sending jobs overseas helps us { February 10 2004 } Data dispite bush rich label for small businesses Dollar hits 11 year low against pound Dollar plunges after us jobs data { March 5 2004 } Dollar slides as consumer data disappoint Dollar slips vs high yielders ahead of trade data Euro hits new high against dollar { February 18 2004 } Fed governor says inflation was too low Fed keeps rates steady calls for patience Gop cheers job increase { April 3 2004 } Greenback slides on lack of fed worries { January 6 2004 } Heineken warns weak dollar will hit profits Inventory levels low show wary business { March 12 2004 } Investors should worry about inflation risks Job growth stalls in february { March 5 2004 } Lack of new job deals blow to us economy { March 5 2004 } Levi strauss zips up last us plants { January 9 2004 } Manufacturing jobs replaced with mcdonalds Manufacturing news disappoints economists Misleading unemployment figures muddled job crisis Mutual fund 40bn inflows 2003 { February 5 2004 } Nasdaq leads surging wallstreet Ny fed warns of risks to us economy Reactions to fed rate left unchanged Real unemploytment rate higher argue economists Senator hollings discusses dangers sending jobs overseas { March 30 2004 } Sluggish job growth threatens recovery { February 10 2004 } States expect budget shortfalls Stocks slip oil prices a worry Treasuries surge as fed ackknowledges jobs gloom Us national debt tops 7trillion { February 18 2004 } Us stocks soar after 5 day tumble Files Listed: 34

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