Wednesday, June 22, 2011

Fed Maintains Current Fed Funds Range; No QE3

As expected, the Fed will maintain the current Fed funds range at 0% to 0.25%.


UPDATE: At present, the Fed funds rate is 0.09%

UPDATE2: The Fed statement shows that the Fed will not conduct a QE3 at the current time.


  1. Statement says inflation will settle below a level consistent with the Fed's mandate. Therefore, they are hinting at possible inflationary action.

  2. Reinvestment into Treasurys of proceeds from maturing Agency and principal payments on MBS will continue (QE Lite). According to the new LSAP FAQ at FRBNY, there will be 7 such POMOs per month.

    Two had been previously scheduled for July 6 and 11, in the range of $2.5 to $3.5 Billion each.