Fed Statement Expected to Include Stimulus Plans

Federal Reserve members are meeting in Washington today and Chairman Ben Bernanke is scheduled to issue a statement later today. It is expected the announcement will contain an outline on how the Fed plans to boost stimulus to support the badly sagging economy.

“The odds of more dramatic action are higher,” said Vincent Reinhart, a former chief monetary policy strategist at the Fed. “However, they might not want to be seen as responding so directly to equity prices,” Reinhart added.

More detail is expected when Bernanke speaks at a Federal Reserve conference at Jackson Hole, Wyoming on August 26th.

Source: Bloomberg

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