Fed Under Pressure to Soothe Markets |
| CNBC - Aug 9, 2011 |
As the Fed meets Tuesday, it has a few tools left to adjust monetary policy, but it is more likely to use words than fire power to soothe markets.
The Federal Open Market Committee is not likely to announce any major policy initiatives, at the conclusion of its regularly scheduled meeting. The decline in financial markets is viewed as too fresh for the Fed to react to in any major way, but it may comment about financial conditions and the economy.
"They've got a very cluttered balance sheet. The Fed doesn't have a lot of room, but I believe in this environment he (Fed chairman Ben Bernanke) has to say something. People don't feel inspired. There's a leadership vacuum," said Art Cashin, director of floor operations at UBS. "I think the problem is after what we saw last week (in Washington ) there's a growing fear here that if a great crisis erupted, geopolitical or otherwise, that these guys can't work together to get things done."
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- Posted: 2011-08-09 10:45:27
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