• Fed made clear prepared to increase or reduce pace of asset purchases
  • Policy helped offset deflationary pressures, kept inflation from falling further
  • Will continue bond buying until labor market improves
  • Aware long term low rates has risks and costs
  • Fiscal policy to exert subsatntial drag on economy this yea. Mon pol can’t fully offset
  • Headwinds to economy beginning to dissipate
  • Employment conditions shown some improvement recently but job market remains weak overall.

A down beat statement so far highlighting the downside rather than upward expectations. Dollar being sold on the back of it.

  • High rates of unemployment and underemployment are extraordinarily costly, damages economy’s potential
  • Long term inflation expectations remain stable, likely to stay at or below 2% goal.

On to the Q&A