{"id":6152,"date":"2008-12-16T21:47:10","date_gmt":"2008-12-17T04:47:10","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=6152"},"modified":"2008-12-16T21:47:10","modified_gmt":"2008-12-17T04:47:10","slug":"the-fed-translated-3","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6152\/the-fed-translated-3\/","title":{"rendered":"The Fed Translated….."},"content":{"rendered":"

Release Date: December 16, 2008<\/em><\/p>\n

The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1\/4 percent.<\/em><\/p>\n

What\u2019s up with the \u201crange\u201d of rates?\u00a0\u00a0 Well, they\u2019d look pretty foolish if they said they wanted the rate to be at .25% and the market was already trading fed funds futures at .14% as of this morning.\u00a0\u00a0 Calling the rate at .25% would be sort of like predicting yesterday\u2019s weather.<\/strong><\/p>\n

Since the Committee\u2019s last meeting, labor market conditions have deteriorated, and the available data indicate that consumer spending, business investment, and industrial production have declined. <\/em>No arguments there. <\/strong>Financial markets remain quite strained and credit conditions tight. <\/em>I\u2019m not sure that a lot of people are as aware of the strain on the financial markets as they should be. <\/strong> Overall, the outlook for economic activity has weakened further. <\/em>Enough said there\u2026.<\/strong><\/p>\n

Meanwhile, inflationary pressures have diminished appreciably. <\/em>Saying that inflationary pressures have diminished is being modest.\u00a0\u00a0 Inflation is dead for now. <\/strong>In light of the declines in the prices of energy and other commodities and the weaker prospects for economic activity, the Committee expects inflation to moderate further in coming quarters. <\/em>For inflation to moderate any further, deflation will become a huge issue.<\/strong> Let me rephrase that, in light of the Consumer Price Index report this morning, it\u2019s pretty apparent that deflation is an issue.<\/strong><\/p>\n

The Federal Reserve will employ all available tools <\/em>(available tools <\/strong>– <\/strong><\/em>oh and since we\u2019re running out of ammo in our normal tools, we\u2019re going to come up with some new ones.\u00a0\u00a0 We hope that they work and we hope that they persuade people to start spending and borrowing money again) <\/strong>to promote the resumption of sustainable economic growth and to preserve price stability. <\/em>Price stability – yeah, we are kind of concerned about that deflation thing and we\u2019re afraid that all of the money we are printing is going to have a very negative effect on the value of the dollar and the value of our stock market investments, but we\u2019ll worry about that some other time.<\/strong> In particular, the Read more<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Release Date: December 16, 2008 The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1\/4 percent. What\u2019s up with the \u201crange\u201d of rates?\u00a0\u00a0 Well, they\u2019d look pretty foolish if they said they wanted the rate to be at .25% and the market was already […]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26],"tags":[277,177,263],"class_list":{"0":"post-6152","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"tag-bernanke","8":"tag-the-fed","9":"tag-tom-vanderwell","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":8184,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8184\/the-fed-translated-6\/","url_meta":{"origin":6152,"position":0},"title":"The Fed Translated….","author":"Tom Vanderwell","date":"April 30, 2009","format":false,"excerpt":"Yep, it's that time again.\u00a0\u00a0\u00a0 The Fed met yesterday and today and came out with their announcement this afternoon at 2:15 pm.\u00a0\u00a0 I promise that this one won't be as long as the last Fed Translated was.As usual, my comments are in bold and italics.....April 29, 2009For Immediate Release:Information received\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6769,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6769\/the-fed-translated-4\/","url_meta":{"origin":6152,"position":1},"title":"The Fed Translated…..","author":"Tom Vanderwell","date":"January 30, 2009","format":false,"excerpt":"Tom here\u2026.\u00a0 Sorry for the delay, but better late than never\u2026.. (my comments are in bold) The Federal Open Market Committee decided today to keep its target range for the federal funds rate at 0 to 1\/4 percent. Nothing new there and no surprises.\u00a0 Can\u2019t go lower than zero and\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":761,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/761\/why-the-fed-matters-to-real-estate\/","url_meta":{"origin":6152,"position":2},"title":"Why The Fed Matters to Real Estate","author":"Dan Green","date":"December 12, 2006","format":false,"excerpt":"The Federal Open Market Committee meets today and will keep the Fed Funds Rate unchanged at 5.250%. It is not what the Fed does, however, that should concern Americans. It's what the Fed says. First, a clarification. The Fed Funds Rate is directly tied to Prime rate which impacts lines\u2026","rel":"","context":"In "Enduring Interest"","block_context":{"text":"Enduring Interest","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/enduring-interest\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9504,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9504\/the-fed-translated-and-why-it-isnt-good-for-interest-rates\/","url_meta":{"origin":6152,"position":3},"title":"The Fed Translated – and why it isn’t good for interest rates…..","author":"Tom Vanderwell","date":"August 13, 2009","format":false,"excerpt":"My apologies for taking almost 24 hours after the Fed to get this up.\u00a0\u00a0 As I\u2019ve done in the past, I want to go through what the Fed said yesterday and give some insights into what I think it means for the housing and mortgage markets.\u00a0\u00a0 You can find the\u2026","rel":"","context":"In "Dirty Laundry"","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3774,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3774\/the-fed-translated\/","url_meta":{"origin":6152,"position":4},"title":"The Fed Translated….","author":"Tom Vanderwell","date":"August 5, 2008","format":false,"excerpt":"As you have probably heard by now, the Fed held rates the same today.\u00a0\u00a0 Here\u2019s their statement (in italics) and my translation (in bold).\u00a0 I hope this helps you understand what is going on. The Federal Open Market Committee decided today to keep its target for the federal funds rate\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2529,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2529\/amaze-your-friends-why-the-surprise-fed-funds-rate-drop-isnt-impacting-mortgage-rates\/","url_meta":{"origin":6152,"position":5},"title":"Amaze Your Friends : Why The “Surprise” Fed Funds Rate Drop Isn’t Impacting Mortgage Rates","author":"Dan Green","date":"January 22, 2008","format":false,"excerpt":"Advanced Fiscal Literacy For Real Estate Professionals The Fed Funds Rate is a fair proxy for economic health.\u00a0 When the economy is growing, the FFR\u00a0rises to fight inflation. When the economy is slowing, the FFR\u00a0falls to fight \"the absence of inflation\" (i.e recession). If inflation is the enemy of mortgage\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/6152","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=6152"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/6152\/revisions"}],"predecessor-version":[{"id":6153,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/6152\/revisions\/6153"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=6152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=6152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=6152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}