FOMC Offers Hesitant Optimism. Upgraded Outlook Overall
ByPosted To: MBS Commentary
The Federal Reserve Open Market Committee has released the March FOMC Statement . On the whole the Fed hinted at an upgrade in economic conditions. Saying the information received since January “suggests” the economic recovery is on “firmer footing”. The labor market also “appears” to be “improving gradually”. Household spending and business investment continue to “expand”. On inflation, the Board acknowledged rising food and energy prices but said it anticipates the effects to be “transitory” or temporary. Longer-term inflation expectations are stable. The Fed made no mention of the crisis in Japan or conflict in Northern Africa/The Middle East. The QEII bond purchasing program is expected to continue as planned before ending in June. No voters dissented the decision. Plain and Simple : Although…(read more)