Very different statement than previous ones; the Money quotes are underlined:
Recent information indicates that the outlook for economic activity has
weakened further. Growth in consumer spending has slowed and labor markets have
softened. Financial markets remain under considerable stress, and the
tightening of credit conditions and the deepening of the housing contraction are
likely to weigh on economic growth over the next few quarters.
Inflation has been elevated, and some indicators of inflation expectations
have risen. The Committee expects inflation to moderate in coming quarters,
reflecting a projected leveling-out of energy and other commodity prices and an
easing of pressures on resource utilization. Still, uncertainty about the
inflation outlook has increased. It will be necessary to continue to monitor
inflation developments carefully.
Dissenting: Richard W. Fisher and Charles I. Plosser, who preferred less aggressive action
at this meeting.
My quote: "If this doesn’t bring down mortgage rates, I cannot fathom what else will."