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21 Mar 2013
Forex Flash: FOMC rode to the rescue of markets - OCBC Bank
FXstreet.com (Barcelona) - OCBC Bank analysts note that the FOMC rode to the rescue of softening market sentiments, suggesting there will be no sudden withdrawal of monetary policy stimulus even as the US economy improves.
Further, Fed chairman Bernanke also said that he does not see “major risks” to the US economy from the “difficult situation” in Cyprus even though it is “something we are paying attention to”, and that “as we make progress towards our objective, we may adjust the flow rate of purchases from month to month to appropriately calibrate the amount of accommodation”. He also clarified that the conditions for removing stimulus are “thresholds, not triggers”. The FOMC statement also said that “labor market conditions have shown signs of improvement in recent months, but the unemployment rate remains elevated” and recent data point to a “return to moderate economic growth following a pause late last year”.
Further, Fed chairman Bernanke also said that he does not see “major risks” to the US economy from the “difficult situation” in Cyprus even though it is “something we are paying attention to”, and that “as we make progress towards our objective, we may adjust the flow rate of purchases from month to month to appropriately calibrate the amount of accommodation”. He also clarified that the conditions for removing stimulus are “thresholds, not triggers”. The FOMC statement also said that “labor market conditions have shown signs of improvement in recent months, but the unemployment rate remains elevated” and recent data point to a “return to moderate economic growth following a pause late last year”.