The Hold Steady

No big surprise today — the Federal Reserve decided to keep its short-term interest rate target unchanged at 0 – 0.25%.  Nobody expected them to raise rates, and there was no real way to lower them, so voila!

The bigger story, which is really not all that big but is being presented as a Fed statement that the recession is all but over, is that the Fed said it would wrap up its $300 billion purchase of Treasury securities a bit ahead of schedule, by the end of October.  Considering that the Fed has already bought $253 billion of those securities, this is no big deal and doesn’t preclude another big monetary stimulus if conditions worsen in the next few weeks.  (The conspiratorially minded could even charge that the Fed is ramping up its monetary stimulus by buying all those bonds sooner, but nobody appears to be saying that.)

It’s all a good excuse for a video clip from a good and acclaimed band that I’m still hoping to develop a passion for someday:

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