Tuesday, August 28, 2007

FOMC Minutes Released

Here are the highlights from the just released FOMC minutes:

  • Fed said consumer spending likely to expand at 'moderate' pace
  • Fed says mortgages available for most borrowers, lower conforming loan rates some support for housing
  • FED says if heightened asset mkt volatility, uncertainty persist, could pare business spending plans
  • Fed judged 'unlikely' market rout would hurt capital spending
  • Fed officials saw 'moderate' expansion as most likely outcome
  • Fed says developments in mortgage markets suggest housing adjustment could prove deep, more prolonged
  • Fed could not rule out further financial market deterioration, need to watch situation carefully
  • Fed says further deterioration in financial conditions might require policy response
  • FOMC minutes deal solely with Aug 7 policy meeting, no mention of subsequent rate cut
  • Fed says expected a return to 'normal' markets after some time


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