The Fed made no mention of reverse repos or other exit strategies other than letting the Treasury buying program lapse in October. The Fed will stretch out it s buying of mortgage backed securities until the end of Q1 2010 though the amounts will remain the same at $1.25 trln mortgages and 200 bln in Agency debt.
The Fed’s outlook for the economy was upgraded but said that rates will stay very low for an extended period. Here is the full statement.
Basically, status quo. And status quo is bad for the dollar and good for stocks.
EUR/USD is now at 1.4825, eying 1.4840 and 1.4865 resistance.
