FOMC Minutes

Fed FOMC minutes just came out and here are some of the points that were raised in the release:

  • Talks of including agency ARM-backed MBS, but no decision to purchase has been made
  • Gradual slowdown of Treasury purchases and the extension up to October could help smoother market transition
  • Revised income estimates imply lower consumer spending in coming quarters
  • Expects core PCE inflation to slow substantially over forecast period
  • Less-aggressive inventory cutting and continuing monetary and fiscal policy stimulus could be expected to support growth in production during the second half of 2009 and into 2010
  • Banks still faced a sizable risk of additional credit losses
  • Long-term unemployment and permanent separations continued to rise, suggesting possible problems of skill loss and a need for labor reallocation that could slow recovery in employment as the economy begins to expand

Read the entire FOMC minutes release here.

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