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Fed leaves key interest rate unchanged, citing low inflation

Fed leaves key interest rate unchanged, citing low inflation

Federal Reserve leaves key interest rate unchanged, citing global problems and low inflation

Associated Press

By Martin Crutsinger, AP Economics Writer 6 minutes ago

WASHINGTON (AP) -- The Federal Reserve is keeping U.S. interest rates at record lows in the face of threats from a weak global economy, persistently low inflation and unstable financial markets.

Ending a highly anticipated meeting, Fed officials said Thursday that while the U.S. job market is solid, global pressures may "restrain economic activity" and further drag down already low inflation.

Signs of a sharp slowdown in China have intensified fear among investors about the U.S. and global economy. And low oil prices and a high-priced dollar have kept inflation undesirably low.

Before year's end, many analysts still expect the Fed to raise its key short-term rate, which it's kept near zero since 2008. A higher Fed rate would eventually send rates up on many consumer and business loans.

"All this really does is punt," said Scott Clemons, chief investment strategist for Brown Brothers Harriman's private banking business.

Clemons said he expects the Fed to raise rates before the end of the year, especially if concern in the financial markets about China's economic prospects eases.

"The Fed is paying attention to what is going on abroad," he said. "That's all code for China."

Stock prices barely moved after the Fed's decision was announced at 2 p.m. Eastern time. But bond prices rose, and yields fell.

Financial markets had been zigzagging with anxiety as investors tried to divine whether the Fed would start phasing out the period of extraordinarily low borrowing rates it launched at a time of crisis.

The Fed's action Thursday was approved on a 9-1 vote, with Jeffrey Lacker casting the first dissenting vote this year. Lacker, president of the Fed's Atlanta regional bank, had pushed for the Fed to begin raising rates by moving the federal funds rate up by a quarter-point.

Instead, the Fed retained language it has been using that it will be appropriate to raise interest rates when it sees "some further improvement in the labor market" and is "reasonably confident" that inflation will move back to the Fed's optimal inflation target of 2 percent.

The Fed's preferred measure of inflation was up just 1.2 percent in the latest reading and has been below 2 percent for more than three years.

In an updated economic forecast, 13 of the 17 Fed policymakers said they see the first rate hike occurring this year. In June, 15 Fed officials predicted that the first rate hike would occur this year. The forecast also reduced the number of rate hikes this year to show an expectation of just one quarter-point increase, rather than two that had been the expectation at the June meeting.

The new forecast significantly lowered the expectation for inflation this year to show the Fed's preferred inflation gauge rising just 0.4 percent, down from a 0.7 percent forecast in June. The change takes into account the further rise in the value of the dollar, which makes imports cheaper, and a recent drop in oil prices. The Fed's forecast still foresees inflation accelerating to a 1.7 percent increase next year, still below its 2 percent target.

The new forecast has unemployment dropping to 5 percent by the end of this year, down from 5.3 percent in June. The unemployment rate in August dropped to a seven-year low of 5.1 percent.

Before Thursday's decision, some economists argued that many factors — from a sharply slowing China to the tumult in markets to persistently less-than-optimal inflation — raised concerns about a rate hike. Others contended that with the U.S. job market considered essentially recovered from the Great Recession, it was time to start edging toward normal rates.

The anxiety that gripped investors stemmed in part from concern that once the Fed starts raising its key rate, other rates — for mortgages, car loans, business borrowing — will eventually rise. Some fear the economy might suffer.

Yet the Fed's influence on many consumer and business rates is only indirect. In the short run at least, those rates could continue to stay low, held down by low inflation globally and by a flow of money into U.S Treasurys.

Fed officials have stressed that once the central bank starts raising rates, the process will be extremely gradual. The Fed might pause for months after its first hike and assess the consequences before proceeding further. Still, economists generally say the effects of a series of small rate hikes will be negligible.

Until turmoil struck markets this summer, a September rate hike seemed a lock. Then, China's surprise decision to devalue its currency ignited fears that the world's second-largest economy was weakening faster than assumed. Stocks tumbled.

At an economic conference last month in Jackson Hole, Wyoming, Fed officials sent mixed signals about this week's meeting. Some indicated they were ready to raise rates if markets had settled and if the economy kept improving.

In July, when Yellen delivered an economic report to Congress, she reiterated that the Fed would likely raise rates before year's end. But she wasn't specific.

___

AP Economics Writer Paul Wiseman contributed to this report

about 9 years ago
Re: Stock quote

Thank you...

Working fine now..

about 9 years ago
Stock quote

Is the stock quote down?

about 9 years ago
Press Release - Naturally Splendid Enterprises Ltd.

Press Release - Naturally Splendid Enterprises Ltd.
Naturally Splendid Signs Definitive Agreement and Receives $100,000.00 Initial Purchase Order from Laguna Blends

BURNABY, BRITISH COLUMBIA (July 29, 2015) - Naturally Splendid Enterprises Ltd. (“Naturally Splendid” or the "Company") (TSX VENTURE: NSP) (OTCQB: NSPDF) (FRANKFURT: 50N) is pleased to announce that further to a Letter of Intent (“the LOI”) with Laguna Blends Inc. (Laguna) announced on April 8, 2015, the Company has signed a definitive development and manufacturing agreement with Laguna who have now placed an initial Purchase Order of $100,000.00 CDN for HempOmega™ Infused Hemp Protein Formulations (“Laguna HempOmega™ Infused Protein Products”).

Laguna anticipates ordering a further $1,500,000 of the HempOmega™ Infused Protein Products in the first year of the Agreement and $4,500,000 of the HempOmega™ Infused Hemp Protein Products in the second year of the Agreement.

Naturally Splendid CEO Craig Goodwin states, “We are pleased to receive this first Purchase Order from Laguna Blends. Naturally Splendid has developed four (4) unique hemp protein formulations enhanced with HempOmega™ and flavoured to meet Laguna’s requirements. Laguna has been granted exclusive rights to these specific four formulations. Naturally Splendid retains all of its rights to HempOmega™ and will continue to cultivate additional clients for this ingredient.”

Under the Agreement, Naturally Splendid is granting Laguna, (i) a license to include the HempOmega™ trade-mark on the Laguna HempOmega™ Infused Protein Products, as specified on a white private label agreement, (ii) a worldwide exclusive on these specific formulations dependent on Laguna achieving certain sales targets (iv) and the right and license to Laguna to sell the Laguna HempOmega™ Infused Protein Products. Laguna must meet the following minimum gross sales targets for the Laguna HempOmega™ Infused Protein Products in order to retain exclusive rights to these products: $1,600,000 in the first year after entry into the Agreement, and $4,500,000 in the second year after entry into the Agreement.

Stuart Gray, President, CEO and Director of Laguna Blends Inc. states, “We would like to thank Naturally Splendid for the research and development of these four (4) initial products. Our market research indicates a strong pull for high quality, plant based omega and protein products. In this area, Naturally Splendid scores a ten out of ten in my opinion. Laguna affiliates will begin to retail these products in the United States and Canada.”

Naturally Splendid CEO, Mr. Craig Goodwin states, “We are very pleased to have the opportunity to secure a significant strategic partner to market and distribute HempOmega™ infused products. We look forward to providing exceptional products and supporting Laguna in their sales efforts.”

About Naturally Splendid Enterprises Ltd.

Naturally Splendid is a multifaceted biotechnology company that is developing, producing, commercializing, and licensing an entirely new generation of plant-derived, bioactive ingredients, nutrient-dense foods, and related products. Naturally Splendid is building an expanding portfolio of patents (issued and pending) and proprietary intellectual property focused on the commercial uses of industrial hemp and non-psychoactive cannabinoid compounds in a broad spectrum of applications.

Naturally Splendid currently has four innovative divisions: (1) Natera® brand of retail hemp superfood products currently distributed throughout North America; (2) PawsitiveFX™ brand of pet care products; (3) BCI Division of plant-derived bulk ingredients including patent-pending HempOmega™; and (4) hemp-based cannabinoid pharmaceuticals and nutraceuticals. The Company's advanced technologies, industry expertise, and strategic partners allow for the creation of customized solutions with a consistent focus on quality and sustainability.

About Laguna Blends Inc.

Laguna’s business is focused on the nutritional health benefits derived from hemp. Laguna has independent affiliates that generate retail sales and have the ability to recruit other affiliates. Laguna’s affiliates utilize tools and technology that enable them to build an international business from their own home or while travelling on the road.

The first products to be launched by Laguna are expected to be functional beverages that provide high levels of protein and/or nutrition. Laguna’s products are made from high quality hemp protein. Laguna’s initial products are: (i) a hemp coffee beverage that contains both whey and hemp protein; and (ii) the Laguna HempOmega™ Infused Protein Products which are flavoured single serving hemp protein packs that can be added to cold beverages. Laguna plans to market the Laguna HempOmega™ Infused Protein Products under the Laguna Blends brand and/or other brand names owned by Laguna. Laguna plans to sell its products through its independent affiliates in the USA and Canada.

For more information e-mail info@naturallysplendid.com or call 604-673-9573

On Behalf of the Board of Directors

J. Craig Goodwin
CEO, Director

Contact Information

Naturally Splendid Enterprises Ltd.
(NSP – TSX Venture; NSPDF – OTCQB; 50N Frankfurt)
2435 Beta Avenue
Burnaby, BC, V5C 5N1
Phone: (604) 570-0902
Fax: (604) 570-0934
E-mail: info@naturallysplendid.com
Website: www.naturallysplendid.com

Forward-Looking Statements
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Naturally Splendid cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Naturally Splendid's control. There is no guarantee that the Company’s plans will be found to be commercially viable, POS will be successful in developing new plant based omega products; the costs to develop these products will not be higher than anticipated; the Company’s ability to compete with large food and beverage companies; sales of any potential products developed will be profitable; and the risk that any of the potential applications may not receive all required regulatory or legal approval. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, Naturally Splendid undertakes no obligation to publicly update or revise forward-looking information.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.



Click here to visit the Naturally Splendid Enterprises Ltd. website

about 9 years ago
Re: IIROC: Resume, Lomiko Metals Inc.

A Nice move on THIS stock today !!! Let's hope it holds well into the New Year !!


Cheers All !!

over 10 years ago
AAT.V up 60 % in one day

What's going on here ? Why the jump in SP ? Anyone know?? All trades within the last hour of trading too !!

almost 11 years ago
gumby1116
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