The two key things I was looking at for possible change was left alone. Th=
e FOMC will leave rates “exceptionally low…for an extended period” and=
their one sentence reference to inflation was exactly the same as the ver=
y dovish comment in Nov that said the “substantial” output gap and “stable=
inflation expectations” will lead to inflation remaining subdued for some=
time.” The FOMC acknowledged the slow down in the pace of job losses by=
saying “the deterioration in the labor market is abating.” They referred=
to consumer spending as “expanding at a moderate rate” whereas they said=
it was “expanding” only in Nov. Bottom line, the Fed remains insistent on=
staying very easy for much longer irrespective of the modest economic bou=
nce, rising commodity prices and inflation expectations, falling US$ and=
lack of emergency conditions that got us zero rates in the 1st place one=
year ago.
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