The Federal Reserve released its Federal Open Market Committee (FOMC) statement, to be followed at 2:15pm ET by Chairman Ben Bernanke’s post-FOMC press conference.
In the statement, the Fed maintained a very dovish tone, but did not allude at all to the possibility of a third round of quantitative easing (QE3).
Highlights from the FOMC statement:
- “Information received since the Federal Open Market Committee met in April indicates that the economic recovery is continuing at a moderate pace, though somewhat more slowly than the Committee had expected”
- “Recent labor market indicators have been weaker than anticipated”
- “The unemployment rate remains elevated; however, the Committee expects the pace of recovery to pick up over coming quarters and the unemployment rate to resume its gradual decline toward levels that the Committee judges to be consistent with its dual mandate”
- Fed Funds rate left at 0-0.25%; “extended period” language remains
- Fed will complete QE2
- Fed balance sheet left at $2.6 trillion
- no dissenting votes
Initial reaction in financial markets:
- Gold price maintains gains near $1,555 per ounce
- silver price maintains gains near $36.65 per ounce
- U.S. Dollar Index (DXY) holds near unchanged at 74.98
- Equity markets hover near the flatline, with the Dow Jones Industrial Average (DJIA) at 12,190
- U.S. Treasuries maintain slight gains
West kirkland makes key hire, launches nevada drilling
West Kirkland Mining (WKM.TSXV) announced the appointment of Kent Samuelson to its technical team as Manager, Nevada & Utah. Mr. Samuelson is a Professional Geologist with more than 25 years of exploration and development experience throughout the western United States. The company also announced the start of drilling on the KB Property in Nevada. Major Drilling America, Inc. has mobilized a reverse circulation rig to the property and is drilling targets generated by soil and rock sampling. Full West Kirkland Mining Press Release.
