September 23, 2009 – Financial times
Pretty much as expected I think, including the three month extension of the agency MBS/debt programme, with a few interesting vignettes.
1. FOMC sees a housing sector pick up but is still not sure about household spending.
2. It sees the pace of business retrenchment slowing.
3. It was a fraction more upbeat about growth prospects than I had expected – or maybe they are just making it clear they do not see a double-dip ahead.
4. No reference to higher commodity prices this time.
5. The slightest hint of a phased exit strategy underway – the FOMC will employ “a wide range of tools” not “all available tools” from here on.
But the key points: no change to the extended period language; completion of the asset purchase programme; no prospect of early rate hikes.