So in its latest policy statement after a two-day meeting of the Open Market Committee, the Fed signaled a continued status quo approach to its stimulus policies, which surprised no one. There were, as WaPo’s Neil Irwin pointed out, a couple of language tweaks, one involving a more pessimistic view of the housing recovery that might have hit some housing-related stocks later today. But all in all, the Fed’s getting better at drafting boring “no surprises” statements.
With Bernanke on the way out and Janet Yellen still facing confirmation hearings, you can expect the Fed to be especially cautious in signaling any change of course until, probably, the spring of next year. Lord knows the economy doesn’t need any abandonment in monetary policy support with Congress still considering another round of appropriations sequesters and perhaps other austerity measures.