Thursday, April 29, 2010

Washington D.C. vs. Brasilia, Brazil

The Federal Reserve Open Market Committee met in Washington D.C. this week and issued their statement yesterday saying conditions "warrant exceptionally low levels of the federal funds rate for an extended period."  Those exceptionally low rates are 0% to .25%.  The full statement of the FOMC can be seen at

The Central Bank of Brazil Monetary Policy Committee (COPOM) also met this week, in Brasilia, and given the strength of their economy and their concern over inflation increased their rate target to 9.5%.  The full statement of the COPOM can be seen at

Our conclusion:  Brazil has a lot of strength in their economy as compared to the U.S.  Investors should consider the above comparisons when determining where to allocate their investment monies.  In this new era, emerging economies such as Brazil have much to offer.