US rates to remain on hold for 'considerable time'

A snapshot view of FOMC statement and press conference.

- Economic activity is expanding at a moderate pace

- On balance, labor market conditions improved somewhat further

- However, significant underutilization of labor resources remains

- Asset purchases are not on a preset course

- Beginning in October, add $5 billion per month rather than $10 billion per month of mortgage backed securities

- Add $10 billion per month rather than $15 billion per month of longer-term Treasury securities

- Assesment of rates and objectives of maximum employment and 2% inflation will include easures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial developments

- Concern Raised That 'Considerable Time' Could Be Seen As Calendar-Linked, Not Data-Linked

- Most officials expect inflation to gradually rise to 2%

- Fed Officials more concerned about overseas growth and srong Dollar

- A few members expressed reservations about characterizing labor underuse as 'significant'

- Many members still saw significant slack in labor markets

- Generally agreed forward guidance changes will present communication challenges

- Number of officials noted forward guidance change might be misinterpreted

- Emphasized forward guidance is data-dependent, not mechanical

- Some saw guidance as appropriate because prudent to err on side of patience

- Concern Raised That 'Considerable Time' Could Be Seen As Calendar-Linked, Not Data-Linked

- Most Indicated Preference For Clarifying Data-Dependence Of Guidance

- Several officials thought current forward guidance points to later liftoff than was likely

- Officials in September debated forward guidance

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