For the seventh consecutive time, Federal Reserve Bank of Richmond President and FOMC voting member Jeffrey M. Lacker dissented, saying that he opposes additional asset purchases because he believes that more bond buying won't quicken economic growth and that there are risks to such excessive monetary easiness.
-Liz Ann Sonders, senior vice president, Charles Schwab & Co., Inc.
Given that it's just two weeks before the presidential election and that the Federal Reserve made several key announcements after its last meeting in mid-September, we weren't expecting any fireworks from today's Federal Open Markets Committee (FOMC) meeting.
With QE∞ underway and the Fed having already extended its extremely low-interest-rate policy through 2015, attention is now focused on the effects these latest moves will have on the economy. No substantial changes were made to the statement accompanying today's meeting, but there were tweaks to today's statement relative to last month's:
- A note that household spending has "advanced a bit more quickly."
- Concession that "inflation recently picked up somewhat, reflecting higher energy prices."