Following two days of meetings by the Federal Reserve’s Open Market Committee, on August 12 the FOMC said “Although economic activity is likely to remain weak for a time, the Committee continues to anticipate that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth in a context of price stability.” See the full Fed release here, and read Forward Capital economist Richard Moody’s reading of the Fed’s tea leaves here. Also last week, the inflation number for July was unchanged.
The University of Chicago’s Richard Thaler has written two pieces of interest–one on healthcare reform in The New York Times on August 16, the other in the Financial Times on the efficient market. Both are worth your time.