December FOMC Minutes Reveal Nothing New

The Federal Reserve today released notes from the December 15-15 FOMC meeting. There were no big revelations in it and for the most part markets have yawned. Here's a quick recap of some highlights:

• The Fed expects moderate growth in 2010 and 2011.
• Rates are expected to stay the same into the future.
• The Committee believes that the risks of inflation are balanced, meaning no significant inflation or deflation for the time being.
• The decline in the pace of layoffs was encouraging but not a sign the labor is improving. More data is needed.
• The Fed expects to continue it purchase of MBS (mortgage backed securities) although it will evaluate when and how to end the program.

So, overall, nothing really new. The Dow is up 13 points and 10 year Treasury yields are up 5 basis points. Parsing the words, we're looking at the status quo well into 2010 - slow growth, high unemployment, and low rates. At least that's what the Fed believes.