- Purchases in addition to $40 billion/month in MBS
- Total QE raised to $85 billion/month, as expected
- Fed drops calendar guidance, adopts economic thresholds
- Rates to stay exceptionally low “at least as long as” unemployment below 6.5%
- Rates to stay low with inflation expected at 2.5% or less
- Will also consider other data on employment, inflation and financial developments in decisions
- Expects highly accommodative policy will remain appropriate for considerable time after asset purchases end
- Lacker dissented, opposing purchases
- Repeats that economy “continued to expand at a moderate pace”
- Full statement
A change in rhetoric that doesn’t amount to much. Risk assets a bit stronger, USD weaker despite a selloff in bonds.
