Inflation is not likely to be an issue for "some time, " the Fed statement added, citing continued "resource slack." In addition, the Fed noted that "investment in nonresidential structures is declining, housing starts have been flat at a depressed level, and employers remain reluctant to add to payrolls."
The Fed also noted that it is winding down the "special liquidity facilities" it had started during the crisis, concluding the Term Assed-Backed Securities Loan Facility at the end of June. It is also finishing a buying program of $175 billion in agency debt and $1.25 trillion in agency mortgage-backed securities. This program is nearly complete and should be finished per its previously announced schedule by the end of March.
See the full release from the FOMC, here.
Comments? Please send them to kmcbride@wealthmanagerweb.com. Kate McBride is editor in chief of Wealth Manager and a member of The Committee for the Fiduciary Standard.
