Here is the key portions of the FOMC statement:
“Information received since the Federal Open Market Committee met in June indicates that the pace of recovery in output and employment has slowed in recent months.”
“The pace of economic recovery is likely to be more modest in the near term than had been anticipated.”
“Inflation is likely to be subdued for some time.”
“Exceptionally low levels of the federal funds rate for an extended period.”
“To help support the economic recovery in a context of price stability, the Committee will keep constant the Federal Reserve’s holdings of securities at their current level by reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities.”1
Note that this is not quite QE2, so lets call it QE 1.5.
Also of interest: Hoenig voted against . . .