The Committee will maintain the target range for the federal funds rate at 0 to 1\/4 percent <\/strong>and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period. <\/strong>The Committee also will maintain its existing policy of reinvesting principal payments from its securities holdings.<\/p>\n The Committee will continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate.<\/p>\n Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Sandra Pianalto; Eric S. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh.<\/p>\n Voting against the policy was Thomas M. Hoenig, who judged that the economy continues to recover at a moderate pace. Accordingly, he believed that continuing to express the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted and will lead to future imbalances that undermine stable long-run growth.<\/strong> In addition, given economic and financial conditions, Mr. Hoenig did not believe that continuing to reinvest principal payments from its securities holdings was required to support the Committee\u2019s policy objectives.<\/p>\n In short, interest rates will stay low. Harry’s conclusions:<\/p>\n + Bonds continue to make sense. But they key is to buy opportunistically. Bonds don’t sell on an open market, like stocks. Hence, to find good bonds, you got to hunt.<\/p>\n + The U.S. dollar will stay weak, which is what the Fed wants — so we can export more. Stocks like Caterpillar (CAT), which export, should do fine.<\/p>\n + Gold, silver and palladium will do OK.<\/p>\n + Those companies\u00a0 doing OK will continue to do OK.<\/p>\n + Somewhere in this arena of ultra-low interest rates, there’s another gigantic boom brewing. I don’t know what it is. It won’t be housing. I’d like to get in on it before it busts five years from now.<\/p>\n Clusterstock issued a release:\u00a0 In Case You Didn’t Realize How Much Gold Investors Love Bernanke<\/strong><\/p>\n The price of gold spiked dramatically right around 2:15 PM ET today, as the Fed released its latest statement on the strength of the economy.<\/p>\n The FOMC mentioned the word quantitative easing, and left the door open for future asset purchases by the central bank.<\/p>\n The result was a rush out of the dollar, and into a myriad of other assets. But gold’s move was the most dramatic.<\/p>\n This is Clusterstock’s chart:<\/p>\n This is my chart:. It shows what the ETF GLD did.<\/p>\n New York City cranks up its campaign against obesity.<\/strong><\/span><\/p>\n I found this poster in a subway yesterday:<\/p>\n I resisted photographing the fat people riding the subway and ignoring the poster. I went to NYC’s\u00a0 web site www.nyc.gov\/health\/drinkingfat<\/strong><\/a> and found this:<\/p>\n![\"\"](\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2010\/09\/GoldSpike.jpg\" "\\"GoldSpike\\"")
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