Calendar crunch

15 March 2011 By Martin Hutchinson

After changing very little on Tuesday, the FOMC’s late April meeting will be the last chance to tweak its bondbuying program and arguably the last to signal rate rises if they are to happen this year. If nothing changes at that point, markets could face a stormy summer.

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The U.S. Federal Open Market Committee maintained the fed funds target rate range of zero to 0.25 percent and confirmed the continuation of its current $600 billion program of Treasury bond purchases until the scheduled end date of June 30.

The FOMC statement noted the rise in commodity and oil prices, which it expects to be transitory, but said that "longterm inflation expectations have remained stable, and measures of underlying inflation have been ... somewhat low, relative to levels which the committee judges to be consistent, over the longer run, with its dual mandate." The committee "will pay close attention to the evolution of inflation and inflation expectations."

The next three FOMC meetings are currently planned for April 2627, June 2122 and August 9.

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