US Fed refrains from open market operations

BY

The New York Federal Reserve Bank refrained from open market operations after its announced 0930 EDT decision time. This is the first time in three days the Fed hasn t acted to add liquidity to the money markets.

Normally, the NY Fed acts within about 10 minutes of the stock market opening. There was no official statement from the Fed.

However, earlier today, European Central Bank president Jeal-Claude Trichet released a
statement saying the markets have "progressively gone back to normal".

"The key message," says Ken Wattret at BNP Paribas, is that the ECB has intervened to calm
down the markets "and that what has driven the turbulence is a reappraisal of risks - i.e. the
end result is desirable from the central banks perspective and they will try and smooth out the
transition process".

Trichet called on "all parties concerned to continue to keep their composure".

BC1410

Noted!

JKL

thanks