Wow! What a day. Incredible moves. Scared markets. Capital stampeding like buffalo not knowing where to go. Great if you’re on the right side of the volatility, but you still needed a neck brace from the whiplash. It’s gonna take a few days before this all to settle out, in our opinion, and then let the panic for yield and return begin. Here is what got it going,
To promote the ongoing economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent. The Committee currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013. The Committee also will maintain its existing policy of reinvesting principal payments from its securities holdings. The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate.