DAILY STOCK MARKET FORECAST

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The central bank of the United States

Conducts monetary policy;  regulates banking institutions;  maintains stability

January 25, 2012 Press Conference with the Chairman of the FOMC, Ben S. Bernanke.                                       

FOMC keeps a range of .00 to .25 percent for the target of the Federal funds rate:

Zero to 1/4 percent

Read the FOMC statement...   About the Fed

The FOMC met Tuesday and Wednesday to discuss and determine any monetary policy change to foster maximum employment and price stability.  The committee meets throughout the year to make policy changes as needed.

The FOMC said it expects to maintain an accommodative stance on monetary policy.  The Committee decided today to keep the target for the Federal funds rate at 0 to 1/4 percent and expects to keep the Fed funds target accommodative at least through late 2014.

Markets may have been looking for a hint of up coming help from the Fed like QE3.

Stocks immediately turned around from negative territory midday and posted gains of 1/2 to 1-percent on the extension of the accommodative statement.

SPECIAL REPORT:  MORE ON THE FEDERAL RESERVE FOMC AS THEY CONCLUDE A TWO DAY MEETING ON THE ECONOMY AND MONETARY POLICY

Federal Reserve FOMC: snippets.

...the economy has been expanding moderately...

...unemployment rate remains elevated....

...housing remains depressed...

... Inflation has been subdued...

...economic growth over coming quarters is expected to be modest...

More on the committees monetary policy...

 GDP:  1-27-2012  9:23 am ET- Real Gross Domestic Product (GDP), the output of goods and services produced in the United States, increased at a rate of 2.8 percent in the fourth quarter of 2011, according to estimates released by the Bureau of Economic Analysis.

SPECIAL REPORT: Q-4 GDP increases on Private Inventory Investment and PCE

Read the current Gross Domestic Product release

Gross Domestic Product (GDP) chart 1987 through current year:

GDP, Real Gross Domestic Product chart 1987 through current reporting period.

GDP, Real Gross Domestic Product chart percent change from preceding year.

The Bureau of Economic Analysis (BEA- agency of the Department of Commerce) produces economic statistics that enable government and business decision-makers, researchers, and the American public to follow and understand the performance of the Nation's economy. They collect source data, conduct research and analysis, develops and implements estimation methodologies, and disseminates statistics to the public…

2- 2-2012  8:55 am ET: The advanced figure for seasonally adjusted initial jobless claims (unemployment) is 367,000, a decrease of 12,000 from the previous week (revised).  Jobless claims report

SPIKE UP IN CLAIMS BUT WITHIN TOLERANCE

Initial Jobless Claims Chart