Throughoutthe FOMC Meeting Minutes the Feds decided to keep the interest rates unchanged between 0.00% and 0.25 %, where the Feds assessed that the country's economic recovery during this past period was taking place at a moderate pace, however, the Feds signaled housing activities are still weak, as the housing sector continues to be depressed.
The Feds confirmed that existing QE2 plans doesn't mean further tightened monetary policy, where Feds majority favor raising rates before selling assets, as the Feds aremaintaining its existing policy of reinvesting principal payments from its securities holdings and will complete the purchases of $600 billion of longer-term Treasury securities.
While on the other hand, the Feds expected unemployment rate to decline gradually, especially in the private sector, while the Feds forecasted moderate growth in spending amid the improvements witnessed in the Manufacturing sector lately.
The Feds signaled unemployment rates are still elevated, amid rise in energy and food prices, noting overall price hiked as the dollar weakened in addition to the unrest witnessed in the Middle east and North Africa.
However, the Feds signaled that Benchmark rate will stay at exceptionally low level for an extended period, where the Feds said QE3 unlikely without big change in outlook and willcontinue monitoring economic conditions and economic developments to help ensure the inflationis at levels consistent with its mandate.