The government had hoped to set rents for some tenants just below the open market rate but the change meant the trusts, which meet a fifth of the demand for social housing in Jersey, will be able to charge less if they want to.
The central bank's rate-setting Federal Open Market Committee also kept its key interest rate at zero to 0.25%.
Two-year-note yields are below 3%, and the rate-setting Federal Open Market Committee is still dithering about how far to move the rate below 4.25%.
Therefore, the Committee has implicitly separated interest rate policy from open market operations, as I am proposing.
FORBES: Allow Interest Rates To Rise While Keeping Monetary Policy Accommodative
The Fed will also release minutes of the Sept. 16 meeting of its rate-setting Open Market Committee on Tuesday.
As the storm gathered during 2008, the Fed aggressively eased monetary policy by using such open market operations (supplemented by discount rate reductions) to drive short-term interest rates to near-zero levels.
Inflation hawks on the open market committee dissented from the latest rate cut and may have succeeded in keeping it to three-quarters of a percentage point rather than the whole percentage point the markets expected.
When the Fed pours money into the system with the purchase of mortgage-backed securities, combined with guidance from the Federal Open Market Committee that the federal funds rate will remain near zero at least through mid-2015, it depresses yields on debt instruments.
FORBES: Ben Bernanke's QE3: The Best Thing for Crowdfunding Since the JOBS Act
Following two days of sell-offs in stock markets across the globe--and a week ahead of its Federal Open Market Committee meeting (when the rate cut was expected)-- the Fed slashed short-term interest rates by three-quarters of a percentage point, its single most dramatic rate reduction since 1984.
At the same time, the U.S. Federal Reserve's Open Market Committee began a two-day rate-setting meeting.
The dollar stumbled after the release of the minutes of the December meeting of the Federal Open Market Committee, which signalled that interest-rate rises may be nearing an end.
The Federal Open Market Committee has fitted us all with interest-rate goggles.
FORBES: The Cash-Out Refi Is Back With a Vengeance -- In Private Equity
Two of the 10 votes on the Federal Open Market Committee, which determines whether to lower the rate, indicated a preference for leaving the rate at 2.25%.
The Federal Open Market Committee voted to keep its fed funds target rate unchanged at a range of zero to 0.25% Wednesday, but did acknowledge the improving economic environment.
That implication could be drawn from the recently released minutes of the Fed's last Open Market Committee meeting, during which the federal funds rate was cut from 2.25% to 2%.
My point here is that open market purchases and the associated expansion of money growth rate are accepted as normal or routine Fed policy so long as interest rates have some room to decline in the process.
FORBES: 'Quantitative Easing' Is A Toxic Phrase for a Routine Policy
Has the Federal Reserve run out of bullets? that implication could be drawn from the recently released minutes of the Fed's last Open Market Committee meeting, during which the federal funds rate was cut from 2.25% to 2%.
On Wednesday, the Federal Open Market Committee (FOMC) voted to keep its interest rate target unchanged through at least late 2014.
The Federal Open Market Committee meets Tuesday to discuss its record-low interest rate policy.
Fed funds futures even discounted a rate hike at next month's regular Open Market Committee meeting.
Wall Street investors are expecting another rate cut when the Fed's Federal Open Market Committee meets in Washington on Oct. 28-29.
It is helpful, however, to get over the idea that interest rate targeting precludes a range of possibilities in open market operations.
The attempt to stimulate the economy further through open market purchases was called quantitative easing to distinguish it from interest-rate easing.
FORBES: Allow Interest Rates To Rise While Keeping Monetary Policy Accommodative
The U.S. Federal Reserve held its key interest rate unchanged at 5.25% at its Open Market Committee meeting today, but left the door open for possible future increases.
Minutes from the latest meeting of the Federal Open Market Committee, the central-bank panel that sets interest-rate policy, indicate a rate-cut idea has been around for a while.
It can be done, but it takes huge open market purchases of assets to move the economy much once the Fed funds rate is more or less at zero.
In times of less turmoil, the central bank generally only deals with primary dealers, a group of 20 big banks and brokerage houses with which the New York Federal Reserve conducts its open-market operations, buying and selling government securities to guide the federal funds rate.
He credited non-proprietary architecture, with its high rate of innovation and low cost, with helping break open the server market, once dominated by proprietary vendors such as Sun Microsystems Inc.
For what has been happening is that the ECB has been buying bonds in the open markets as a way of reducing the interest rate that Greece must pay on market borrowings.
In view of the weakening outlook and the downside risks to growth, the Federal Open Market Committee (FOMC) has maintained a relatively low target for the federal funds rate despite an increase in inflationary pressures.
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