The Federal Open Market Committee's statement from its last meeting of the year acknowledged some slight economic growth but generally kept current stimulus, including mortgage-related programs, on a steady path.
One habitual dissenter, Charles L. Evans, continued to push for more additional policy accommodation; but most members of the committee voted as expected for what DB Advisors global chief economist Josh Feinman said he would characterize as a “steady as she goes” approach.
The Fed said in its statement that it would continue to reinvest payments from its holdings of agency debt and agency mortgage-backed securities as well as maintain other forms of pre-existing stimulus. It said that while there have been continued advancements in other forms of household spending the housing sector remains depressed.
Feinman said in an interview that while the statement shows the FOMC was “a little bit encouraged by the recent data” showing some growth in parts of the economy it was “not enough to move the dial in a big way.”
The FOMC continues to be clearly worried about risk to the hint of economic growth seen, particularly Europe, he said.
Feinman said January's meeting, which comes with the release of a new quarterly forecast, could possibly include some tweaks to the Fed's previously commitment to hold rates low through 2013.
