Instant view: Fed holds fire, lone dissenter wanted more easing
NEW YORK (Reuters) - The U.S. Federal Reserve left monetary policy on hold on Wednesday and offered a moderately brighter economic outlook, but flagged risks to growth that appeared to leave open the door for further easing.
KARL MILLS, PRESIDENT, JURIKA, MILLS & KEIFER INVESTMENT PARTNERS, OAKLAND, CALIFORNIA
"As expected. We've seen some marginal improvements in the economy. There was some talk about QE3 and whether they would lay the groundwork for that. There didn't seem to be any reason for that other than to say we are there with the fire hose of last resort and we will do whatever we need to do to support the economy ultimately, but we are not going to open the candy jar right now."
"Our view on the Fed statement is as expected, a non-event at the moment. It's good news in the sense they are acknowledging there is some marginal improvement in the economy here right now. There are still causes for concerns, particularly among employment and housing, if you believe those are bottoming and improving that's better."
"All eyes are quickly going to jump across the Atlantic to the south of France and the G20 comments on what is happening in Europe."
CARY LEAHEY, MANAGING DIRECTOR AND SENIOR ECONOMIST, DECISION ECONOMICS, NEW YORK
"The Fed has a right hand and a left hand and this time the left hand decided to dissent because the Fed was not doing enough. That was not a surprise. Having a dissent from a dove does not surprise me."
JIM AWAD, MANAGING DIRECTOR AT ZEPHYR MANAGEMENT, NEW YORK Continued...