Positive signs of growth should result in Fed taking hands-off stance
With some signs of positive economic growth, including increased demand for manufacturing equipment, analysts see the Federal Reserve adopting a hands-off approach during Tuesday’s meeting of the Fed’s Open Market Committee.
“I don’t think this meeting lends itself to any major overhaul of policy,” Jacob Oubina, an RBC Capital Markets senior economist told Reuters news.
Any potential action likely would occur when the FOMC next meets in late January 2012. Delaying any further stimulus would allow for economists to further gauge domestic economic data, as well as any potential risk posed by the debt crisis in Europe.
While most economists are focused on the short-term, the Congressional Budget Office (CBO) released a illustrative graphic of the immense challenge lawmakers face in their efforts to curb Federal spending.