Economic News

WASHINGTON (Dow Jones) - The following is the text of the statement that the Federal Reserve released on Wednesday with its decision on interest rates. "The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent. The moderation in economic growth appears to be continuing, partly reflecting a cooling of the housing market. Readings on cor ...

The US Federal Reserve has kept its key interest rate on hold at 5.25% for the second successive month amid signs that economic growth has slowed. The Fed ended a two-year cycle of increases in August and was not expected to take action again as it sizes up the economic situation. Inflationary pressures have eased in recent weeks and the US housing market also has slowed significantly. Experts will study the Fed's language to gauge its future intentions. "I think we are in pause mode for som ...

CHICAGO (Reuters) - The Federal Reserve could keep benchmark interest rates steady for some time given its focus on pulling down inflation, said Paul McCulley, managing director of the giant bond fund PIMCO. "The hurdle to starting an easing process is high, because the Fed actually does want to see softer employment growth" given recent signs that labour market tightness is pushing up compensation levels, McCulley said in a research note released on Wednesday. "A deceleration in growth is not ...

WASHINGTON (Reuters) - The U.S. Federal Reserve on Wednesday held its benchmark interest rate steady for a second straight meeting, biding time to assess whether cooling economic growth will curb price pressures. As widely expected, the central bank's policy-setting Federal Open Market Committee voted to keep its overnight federal funds rate target at 5.25 percent, the level it reached in June af ...

Treasury prices were mildly higher early Wednesday afternoon, after the benchmark yield briefly touched a six-month low, while the fixed-income market girded itself for a Federal Open Market Committee decision that is widely expected to leaves rates unchanged. The benchmark 10-year Treasury note last was up 3/32 at 101-5732 with a yield of 4.720%, down from 4.735% at Tuesday's close. Prices and ...

LONDON (AFX) - The dollar drifted lower ahead of the main event of the day, the US rate decision and accompany statement this evening, which many believe will come in a little more dovish than previously expected. While no change in rates is predicted, the statement accompanying the verdict will receive close scrutiny for hints on future decisions but many investors are also gravitating towards l ...

NEW YORK (AFX) - PIMCO, one of the world's largest bond managers, expects the U.S. economy to slow appreciably over the next 12 months, a PIMCO executive said Wednesday. The biggest downside risk for global growth is a sharper-than-expected slowdown in the U.S. housing market, said Paul A. McCulley, a managing director and portfolio manager at PIMCO in paper on its cyclical outlook and investment ...

NEW YORK (AFX) - Treasury bond prices rose by midday Wednesday, as the market anticipated the Federal Reserve would signal reduced concern over inflation and leave interest rates unchanged in the afternoon. The rise came on the heels of a strong rally Tuesday spurred by housing and inflation data that came in weaker than expected. The price of the Treasury's 10-year note was up 6/32 point, or $1 ...

LONDON (AFX) - European government bonds moved higher, tracking US Treasuries on hopes that the Federal Reserve will hint that US interest rates have now peaked. The Federal Open Market Committee is fully expected to leave US rates unchanged for a second month running at 5.25 pct and all attention will focus on the accompanying statement for clues on the outlook for the coming months. "The  ...

Treasury prices were slightly higher early Wednesday, as the benchmark yield skidded to a six-month low, while the fixed-income market geared up for a Federal Open Market Committee decision that is broadly expected to leaves rates unchanged. The benchmark 10-year Treasury note last was up 4/32 at 101-8/32 with a yield of 4.719%, its lowest standing since late March and down from 4.735% at Tuesd ...