Its November meeting minutes imply that its next move will be better communication -- not additional asset purchases
If the market is hoping for relief from the Federal Reserve, then it will find the monetary policy committee's November meeting minutes very disappointing. Although we already knew that no additional stimulus measure were taken by its statement released a few weeks ago, the minutes released today appear to preclude the possibility of a new asset purchase campaign. Even though inflation is declining and the labor market remains stuck, more quantitative easing doesn't appear to be coming.
One key paragraph from the minutes reveals this. Here's the most important part:
A few members indicated that they believed the economic outlook might warrant additional policy accommodation. However, it was noted that any such accommodation would likely be more effective if it were provided in the context of a future communications initiative, and most of these members agreed that they could support retention of the current policy stance at this meeting. One member dissented from the policy decision on the grounds that additional monetary policy accommodation was warranted at this time.
The committee says a few things there. First, only one member (the one who dissented) felt that additional action was immediately necessary. Only a few thought more action "might" be needed. From this, it looks like the majority of members did not think that a new effort from the Fed to push the recovery along would be necessary.