As scheduled, the FOMC has released the minutes from it's recent policy meeting ending April 29th. 

Highlights are as follows:

GDP forecasts cut again.  Previous range was -1.3 to -0.5.  New forecast is -2.0 to -1.3.  2010 still seen turning positive again

Most Fed Governors see a "return to long run potential" taking 5 to 6 years

Most expected gradual recovery with elevated unemployment through 2011

FEWER saw risk to inflation outlook

some note risk that inflation could stay persistently too low

Most expected Inflation to be subdued over next few years

Most agreed inflation risks are balanced

Economy still facing significant downside risks.

Available data indicates stabilization still tentative

Some evidence emerging that the RATE of contraction is starting to decrease.  (aka "less bad")

Many believed risk of protracted deflationary period had decreased

Security Purchases remain intact

SOME THOUGHT SECURITIES PURCHASES SHOULD BE INCREASED IN ORDER TO STIMULATE RECOVERY

Long run forecasts unchanged

2009 core PCE target revised upward from .9 - 1.1 to 1.0-1.5

2009 unemployment forecast now 9.2 to 9.6 % versus 8.5 to 8.8% previously

 


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