Besides That, All's Well!

Highlights of today’s monetary policy statement by the Fed:

· On Financial Markets: “Strains in financial markets have increased significantly…”

· On Growth: “Economic growth appears to have slowed recently, partly reflecting a softening of household spending. Tight credit conditions, the ongoing housing contraction, and some slowing in export growth are likely to weigh on economic growth over the next few quarters.”

· On Employment: “…labor markets have weakened further.”

· Inflation: “Inflation has been high, spurred by the earlier increases in the prices of energy and some other commodities. The Committee expects inflation to moderate later this year and next year, but the inflation outlook remains highly uncertain.”

· On Risks: “The downside risks to growth and the upside risks to inflation are both of significant concern to the Committee.”

· There were no dissenting votes at today’s FOMC meeting.

· The next scheduled meeting of the FOMC is October 28 and 29.