Federal Open Market Committee Meeting

The Australian Financial Review (AFR) reports that the minutes from the January Federal Open Market Committee meeting, released on Wednesday night (Jan 26, 2012, Australian time) surprised markets with its dovish tone, after a string of stronger than expected economic data.

“The committee voted to extend the deadline for US interest rates being held in a range of zero to 0.25 per cent from mid-2013 to the end of 2014, arguing “strains in global financial markets continue to pose significant downside risks to the economic outlook.”  AFR, market wrap, page 19.

It is ever thus.  We pointed out in our 2011 subscriber e-book, “What the hell is going on in 2011 and into 2012”, that since at least 1800 in the US, real estate cycle low points and for the following 4 to 7 years after, the economic behavior has been always the same, relative to the times.  Read more herewhere non-subscribers can download their copy.  Essential reading if you want to see the repeat patterns.  But even more, take advantage of them.  Significant trading ramifications once you put the two and two together.

Read more here.