The field of economic is quite integral for the entire economy as a whole. Monetary policy is one of the most important tools used by the policy makers to keep the momentum going of the economy. In the same context, Federal Reserve (FED) of United States of America (USA) has also present economic and monetary release every or two months to stabilize their weakening economy.
The Federal Open Market Committee (FOMC) has presented an economic release for the economy of US. The points raised in this meeting are almost the same as of the previous economic release or more precisely, it can be said that no change has been occurred during the previous and this months statement. The economic outlook presented by them in this new meeting is almost the same as the June meeting as they highlighted that the pace of recovery and out employment will be slowed in near future.
The Committee will retain the goal stretch for the national finances scale at 0 to 1/4 percent and continues to expect that lucrative conditions, with low charge of supply utilization, soft inflation trends, and fixed inflation expectations, are apt to warrant exceptionally low levels of the federal burial grade for a wholesale stop. Some change has been occurred in Whole Sale Inventories m/m of US as it increases by 0.5% from the previous release. The economic optimism has also slowed down in this meeting showing a decrease of 2.5% from the previous economic release.
These data and meeting left a negative impact on the financial market and depressed the economic power of US$ against the major currencies like British Pounds and Euro. Today on 11 August 2010, USA will also announce the Crude Oil Inventories and Federal Budget Balance data which has a dominant effect on the Crude oil prices and also on the power of US$ against its major competing currencies.