U.S. Federal Reserve Meeting Minutes For September 23

Good and bad news mixed in, but no surprises.

(RED = Negative Views on Economy Green = Positive Views on Economy)

• Fed Members Said Employment Conditions `Remained Weak’
• FOMC Members Said Financial Markets `Broadly Positive’
• FOMC Members Said Housing Activity Rising, Prices Stabilized
• Fed Members Said Unemployment Unlikely To Fall `Appreciably’
• Fed Members Expressed Uncertainty On Outlook Without Govt Aid
• Many FOMC Members Said Consumers Likely To Remain Cautious
• Most FOMC Members Saw `Substantial’ Labor Slack In Coming Years
• Many FOMC Members Raised Economic Projections For Second Half
• Most FOMC Members Thought An Economic Recovery Was Underway
• Many FOMC Members Said Recovery Likely To Be `Quite Restrained’
• FOMC: Overall Economic Activity Beginning To Pick Up
• FOMC Says Gradual Housing Sector Recovery Underway
• FOMC Discussed Need For Flexibility On Size Of Asset Purchases
• Some FOMC Members Favored Increasing Limit To MBS Purchases
• Fed Economists Saw Core Inflation Slowing Over Next Two Years
• Fed Economists Saw Unemployment Declining To 8% By End Of 2011
• Fed Economists Saw Unemployment Falling To 9.25% By End Of 2010
• A Few On FOMC Wanted To Slow Asset Purchases Over Longer Period
• Fed: Some FOMC Members Wanted To Taper Asset Purchases Quickly

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