FOMC: Recovery Yes, But High Unemployment For Years

FOMC: Recovery Yes, But High Unemployment For Years
The September Minutes from the FOMC are out and the tone is getting far less cautious and far less negative, despite all the caveats. It also shows that there is some disagreement among members regarding the size of MBS purchases as well as differing on views of inflation. There is a notion that the overall economic outlook improved. As far as asset purchases, members stressed the importance of maintaining flexibility to expand the asset purchases if the economy started to roll back over and the members wanted the flexibility to shrink the repurchases or to scale the programs down if conditions keep improving or improve faster than expected.


September 22-23, 2009
FOMC Minutes

A joint meeting of the Federal Open Market Committee and the Board of Governors of the Federal Reserve System was held in the offices of the Board of Governors in Washington, D.C., on Tuesday, September 22, 2009, at 2:00 p.m. and continued on Wednesday, September 23, 2009, at 9:00 a.m.

PRESENT:
Mr. Bernanke, Chairman
Mr. Dudley, Vice Chairman
Ms. Duke
Mr. Evans
Mr. Kohn
Mr. Lacker
Mr. Lockhart
Mr. Tarullo
Mr. Warsh
Ms. Yellen

Mr. Bullard, Ms. Cumming, Mr. Hoenig, Ms. Pianalto, and Mr. Rosengren, Alternate Members of the Federal Open Market Committee

Messrs. Fisher and Plosser, Presidents of the Federal Reserve Banks of Dallas and Philadelphia, respectively

Mr. Lyon, First Vice President, Federal Reserve Bank of Minneapolis