From FT Alphaville:
– Well, open-ended QE is what we anticipated, and open-ended QE is what we got — specifically an additional $40bn of monthly agency MBS purchases. And the purchases were indeed tied to economic outcomes, though in vague terms:
“If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability.”Expect some questions about the meaning of “substantially” in the presser.
– The language guidance was indeed pushed back to mid-2015, not late-2015 as we thought was possible. In addition, these two parts of the statement are more forceful than in the past:...