OVERNIGHT MONEY: March madness not likely at Fed meeting

TUESDAY'S BIG STORY:

Fed forecast: The powers that be at the Federal Reserve will once again hold a meeting of the minds Tuesday, as the policy-setting Federal Open Market Committee (FOMC) gets together for its March meeting. 

Since the start of the financial crisis, the Fed has been quick to lower rates and encourage the economy to get moving. And with rates now as low as they can go, the Fed has promised to keep them there for, well, a long time — until at least the end of 2014. 

Expect more of the same following Tuesday's meeting. 

Despite the recent run of good news, particularly on the employment front — Friday's report showed that the economy added 227,000 jobs in February — Fed officials remain concerned about the trajectory of the economic recovery. 

While the job picture might be improving, Fed officials are quick to point out that the economy still has a long way to go toward a full recovery, especially while several key pieces, like the housing market, remain out of whack.

The popular opinion for the meeting is that the Fed probably won't roll out any major new initiative (sorry, QE3 fanatics), but it will be interesting to see how the Fed decides to paint its view of the economy as the recovery slowly chugs along.

“Monetary policy is not a panacea,” Fed chief Ben Bernanke said recently. “The long-term health of the economy depends mostly on decisions taken by Congress and the administration."

BREAKING NEWS

Hit the gas: Interior Secretary Ken Salazar took to the White House briefing room Monday to defend President Obama’s energy plan after a new poll suggested high gas prices are eroding the president’s approval numbers.

Salazar insisted that Obama is reviewing short- and long-term actions to lower gas prices, while also noting that there are no quick fixes to the problem.

“All options are on the table because the president obviously feels the pain that the American people are facing,” Salazar said when asked if the administration would tap the Strategic Petroleum Reserve, a 696-million barrel emergency oil stockpile.

Don't trade on me: The United States and the European Union each claimed victory Monday after the World Trade Organization (WTO) affirmed that Boeing has received illegal subsidies from the U.S. government.

The WTO’s Appellate Body upheld a March 2011 ruling that found the United States provided illegal subsidies to Boeing, the nation’s largest exporter, through defense and space research grants. Aid provided to Boeing in Kansas and Washington state was also found to be in violation.

The latest WTO ruling, which can be enforced with trade sanctions if the aid is not removed, is not as broad as the EU had sought. 

Check that off the list: The federal government and 49 states filed a $25 billion settlement on Monday with the nation's largest banks over foreclosure abuses. 

After more than a year of negotiations, five firms — Ally Financial, Bank of America, Citigroup, J.P. Morgan Chase and Wells Fargo — agreed last month to provide at least $20 billion in financial relief to borrowers as well as $5 billion in cash to federal and state governments.  

Approximately $1.5 billion will be used to pay homeowners between $1,500 and $2,000 for those whose homes were sold or taken in foreclosure between Jan. 1, 2008, and Dec. 31, 2011, and those who meet other criteria. 

ECONOMIC INDICATORS

Business Inventories: The Department of Commerce releases a report that includes sales and inventory statistics from all three stages of the manufacturing process — manufacturing, wholesale and retail.

Retail Sales: The Commerce Department also will release total receipts of retail stores. The changes in retail sales are widely followed as the most timely indicator of broad consumer spending patterns. 

WHAT YOU MIGHT HAVE MISSED

— House GOP leader calls for US to reject $37B IMF loan to Greece
— Ambassador to Russia pushes trade bill, defends record
— Lobbyist opens Washington office for W.Va. ad agency
— Treasury reports $232B deficit in February
— Yahoo files massive lawsuit against Facebook

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