The FOMC Statement has been released. Here is a recap:
- FED REAFFIRMS PROMISE TO KEEP RATES EXCEPTIONALLY LOW FOR AN EXTENDED PERIOD
- FED REPEATS EXPECTATION THAT MORTGAGE BACKED SECURITIES, AGENCY DEBT PURCHASES TO BE EXECUTED BY END OF Q1
- SWAP ARRANGEMENTS WITH CENTRAL BANK COUNTERPARTIES WILL CLOSE SWAP ARRANGEMENTS ON FEB 1
- FED SAYS WINDING DOWN TERM AUCTION FACILITY, FINAL AUCTION TO BE ON MARCH 8
- HOENIG ONLY DISSENT IN DECISION ON POLICY ACTION; BELIEVED CONDITIONS CHANGED, LOW RATE, EXTENDED PERIOD VOW NO LONGER NEEDED
- ECONOMIC ACTIVITY TO STRENGTHEN, DETERIORATION IN LABOR MARKET ABATING
- HOUSEHOLD SPENDING EXPANDING AT MODERATE RATE, CONSTRAINED BY WEAK LABOR MARKET, TIGHT CREDIT
- INVESTMENT IN STRUCTURES STILL CONTRACTING, BUSINESSES RELUCTANT TO ADD TO PAYROLLS
- BANK LENDING CONTINUES TO CONTRACT, BUT FINANCIAL CONDITIONS SUPPORTIVE OF GROWTH
- PACE OF RECOVERY SEEN MODERATE FOR A TIME, FED ANTICIPATES GRADUAL RETURN TO HIGHER RESOURCE USE
- FED SAYS WITH HIGH UNEMPLOYMENT, STABLE INFLATION EXPECTATIONS, INFLATION LIKELY SUBDUED FOR SOME TIME
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