• Extended discussion on selling of MBS and agency debt to shrink balance sheet but deferring sales until after first interest rate hike
  • Sales seen taking place over three-to five year period
  • GDP outlook raised to 3.2-3.7%
  • Some concern European crisis could hurt US financial markets, slow recovery
  • Greek crisis acceleration weighing on financial conditions and confidence in eurozone.
  • Consumer spending unlikely to be a major driver of recovery