Thursday, April 1, 2010

ALERT 2: Bernanke Calls Expedited Meeting

Okay, first Giethner cancels a visit to the Bronx, now Bernanke is calling an expedited meeting for Monday. They have my attention. Here's the Federal Reserve's full announcement:
Advance Notice of a Meeting under Expedited Procedures

It is anticipated that a closed meeting of the Board of Governors of the Federal Reserve System at 11:30 a.m. on Monday, April 5, 2010, will be held under expedited procedures, as set forth in section 26lb.7 of the Board's Rules Regarding Public Observation of Meetings, at the Board's offices at 20th Street and C Streets, N.W., Washington, D.C. The following items of official Board business are tentatively scheduled to be considered at that meeting.

Meeting date: April 5, 2010

Matters to be Considered:

1. Review and determination by the Board of Governors of the advance and discount rates to be charged by Federal Reserve Banks.
A final announcement of matters considered under expedited procedures will be available in the Board's Freedom of Information and Public Affairs Offices and on the Board's Web site following the closed meeting.

For more information please contact: Michelle Smith, Director, or Dave Skidmore, Assistant to the Board, Office of Board Members at 202-452-2955 202-452-2955 .

Supplementary Information: You may call 202-452-3206 202-452-3206 beginning at approximately 5 p.m. two business days before this meeting for a recorded announcement of any bank and bank holding company applications scheduled for the meeting; or you may contact the Board's Web site at for an electronic announcement about applications and other expedited items, as well as procedural and other information about the meeting.

Dated: April 1, 2010
This is pretty much the exact wording the Fed used the last time they raised the discount rate. Which is what this meeting is likely all about, an unimportant discount rake hike.

Bernanke may be just training the markets to expect rate moves at times other than during regularly scheduled FOMC meetings. On the other hand, it could be an event that it is going to be co-ordinated with banks globally, with some international moves. I am still leaning to it being an unimportant discount rate hike, but my antenna is up. And, of course, a hike in the Interest Rate on Excess Reserves would be extremely significant.

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