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