About Ken Tumin

Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

Featured Savings Rates

Popular Posts

Featured Accounts

FOMC Statement: No Policy Changes, Door Open for More Action


FOMC Statement: No Policy Changes, Door Open for More Action

Some economists were predicting QE3, and several were predicting that the Fed was going to change its low-rate guidance language from late-2014 to 2015. That did not happen. There were no new actions announced in today's FOMC policy statement, and the late-2014 language remained the same.

There were some minor changes in the language of the policy statement. The most significant is the Fed's description of the economy in the first sentence. It changed from the following in June:

Information received since the Federal Open Market Committee met in April suggests that the economy has been expanding moderately this year.

To the following today:

Information received since the Federal Open Market Committee met in June suggests that economic activity decelerated somewhat over the first half of this year.

In summary, the economy hasn't worsened enough for the Fed to take new actions. Before the next FOMC meeting, we'll see July and August unemployment reports, and those may spur the Fed into more action. The Fed statement did include the following new language that suggests this:

The Committee will closely monitor incoming information on economic and financial developments and will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.

I would like to think that the Fed has realized that new actions would have little or no effect in terms of improving the economy and lowering the unemployment rate. However, I think most on the FOMC believe more action can be useful if the economy worsens. The only exception may be Jeffrey Lacker, the president of the Federal Reserve Bank of Richmond, who again voted against the policy. Just like in previous meetings, the Statement said that Lacker "preferred to omit the description of the time period over which economic conditions are likely to warrant an exceptionally low level of the federal funds rate."

Future FOMC Meetings

The remaining FOMC meetings for the year are scheduled for September 12-13, October 23-24 and December 11-12.

Related Posts

Anonymous   |     |   Comment #1
bernanke and the fed has no mercy for the savers.we have lost more than the losers.the fed should be subject to audit and the vote of the people RISE UP SAVERS IT IS TIME FOR US TO STOP THE BULL****< WE ARE CITIZENS TOO
Anonymous   |     |   Comment #2
All of you need to understand.......Interest will NEVER go up again. NEVER. By definition.....they cannot increase. The only way to have this size of a debt is to have tiny interest rates. Otherewise......the debt would explode and end life as we know it. The debt will explode regardless.....but with tiny interest rates the politicians can pass it down the road for now. Also......the economy has now accepted these rates as a given and a certainty. They cannot be raised ever again. It's over. If you really want a CD.......the term is meaningless. .....6 months.....1 year.....10 years......all the same. Rates will never rise again. It's over. Ballgame. Done.
Anonymous   |     |   Comment #4
 To Paoli2,

Your petition is worthless without the Congress being involved.
Waste of our time to even read your web site.
Paoli2   |     |   Comment #5
#4  If the Petition is so worthless why are concerned Americans still signing it.  I just am not going to keep promoting it here.   I do  think the link I have posted today can be even more helpful than the Petition.  Want to tell "them" they don't know what they are doing?  Thanks for your opinion anyway.
Anonymous   |     |   Comment #6
Paoli2-So......are you saying in the past you have presented a petition that was involved with'MoveOn'??? If you did....I would never sign anything you put on here.....past,present,future. Sorry.....I'm a patriot and Real American.
Anonymous/Paoli   |     |   Comment #7
#6  What is your problem?  First of all, "I" as in ME did not write the Savers Petition.  It was written up by a lady who is not a regular on here.  We were looking for a Petition to voice our concerns and when I read hers I presented it to Ken to find out if it could be acceptable for this group.  Ken gave it a good write up and also SIGNED it with his own personal note!   So are you saying KEN could not be trusted to select the right Petition for this group?  I had no idea the writer used the MoveOn Petition site called SignOn for the Petition.  It was convenient for her and she had no idea some people would turn purple because of her choice.  So we don't have to become MoveOn members to sign the Petition and no one was forced to donate to them.  I sure didn't because I don't believe in a lot of their philosophies.  I just believed in this Petition because I feel we need to take a stand on this issue.

You can tell me you don't like my postings and even agree with one of our members that I am "the old cronie of DepositsOnline" but to say you won't sign anything I put on here "ever" is being a bit over the line.   I guess you should not even be posting to this forum with that attitude because you are also criticizing Ken who allowed us to post the Petition here.  You can have whatever political feelings you want but to have such an attitude against me over this Petition is a bit over the line.  If you were a true American and Patriot, you would know your own.   I have never been affiliated with MoveOn and really resent your post.  Is your name "Jason"? 
Anonymous/Paoli   |     |   Comment #12
Does this at least mean we can expect savings rates to stay put for the rest of this month??  I sure hope so!
Shorebreak   |     |   Comment #15
In recent years, the Federal Reserve has purchased around 60%-70% of all U.S. government debt issued. Printing money out of thin air and eventually owning the country.
Shorebreak   |     |   Comment #17
What's the fast food restaurant Chic-fil-A got to do with the Federal Reserve, Anonymous #16? Please provide the linkage. Thanks.
Dan B
Dan B   |     |   Comment #21
None of my business, but considering that there seems to be nothing even resembling a unified voice fighting for your interests, I'd have thought that people here would be more open to any attempts at finding common causes & at forging alliances.................But apparently not.  I think very little of the current occupant of the White House or MoveOn, but if either were on the side I was on in a particular issue, then that'd be fine. Temporary alliances are how a lot of things are accomplished.
Shorebreak   |     |   Comment #23
The Fed’s Dilemma: Low Inflation Means Low Growth

"This week, the Fed proved once again that it believes its primary purpose is to achieve zero inflation regardless of the cost, as it declined to act despite an economic growth rate of just 1.5 percent in the second quarter. Eventually, the Fed needs to recognize that it is still fighting a war that it won a long time ago."

Anonymous   |     |   Comment #25
Why are all the posts that disagree with Paoli being deleted? There was nothing wrong with them other than showing a different opinion. What gives?????
Anonymous   |     |   Comment #26
RE: Anonymous - #25, Friday, August 3, 2012 - 9:39 AM

Try reading the comment policy.
Anonymous   |     |   Comment #30
While I agree that Ken has a right to delete any thread he want's to delete (it is his board after all), I do think it makes it a website that others will no longer visit when he acts one sided and supports the liberal view all the time. Some may think it pety to feel this way but I agree that it is time to take a stand against the liberal agenda. I find it funny that the liberals are always touting "tolerance" and "acceptance" but are always quick to shut down any opinion they don't agree with.

Read this before it is deleted in three... two... one.....
lou   |     |   Comment #33
Shorebreak, I totally disagree with the article you linked. I don't know how you could say that the present bunch of numbskulls at the FED desire zero percent inflaton. After QE1&2, operation twist, ZIRP and now most probably QE3, I don't think this present group are overly concerned with inflation or the value of the dollar.