Fed Watch

The Federal Open market committee concluded its meeting today without any change in policy. They recognize that the recovery is too slow and will continue their recent actions to keep the federal funds rate near zero and to gradually extend the maturity of the government securities they hold. As short term securities mature, they replace them with purchases of longer term securities.

The FOMC sees the economy expanding moderately with a gradual decrease in unemployment. However, they see a major downside risk with the European financial uncertainty.

The only dissenting vote on the FOMC was a Federal Reserve Bank President who wants greater ease.