What was the Feds FOMC statement economist reaction?”
Some of the economist reaction: Joshua Shapiro, Chief U.S. Economist, MFR, Inc. “There were minor changes to some of the verbiage, but the main elements of the statement remained constant with the exception of a more definitive time-frame being put on the end of Fed Treasury purchases, which are now seen gradually slowing until the US$300-billion is completed by the end of October (previously set to finish “by autumn”). Judging by the immediate market selloff, there were more than a few participants who were hoping for a greater commitment toward Treasury purchases.” Derek Holt and Karen Cordes, Economists, Scotia Capital “This statement is all about buying some time. In this regard, it’s well crafted. By retaining most of the language used in the past statement, gently nodding in the direction of further improvements in the economy and markets, and avoiding major policy changes right now, the Fed is keeping its powder dry in order to evaluate the sustainability of the recovery in mark
